The Self Employed Income Support Scheme (SEISS) has been extended for a third time. If you were not eligible for the first and second grant based on the information in your Self Assessment tax returns, unfortunately you will not be eligible for the third. HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1st November 2020 and 29th January 2021, which you reasonably believe will have a significant reduction in your profits.
The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. The online service to claim the third grant is now open. If you’re eligible, you must make your claim for the third grant on or before 29th January 2021.
The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020/2021 Self Assessment tax return.
Who can claim?
To be eligible for the third grant you must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust.
If you claim Maternity Allowance this will not affect your eligibility for the grant.
You must have traded in both tax years:
- 2018 to 2019 (your Self Assessment tax return submitted on or before 23 April 2020 for that year)
- 2019 to 2020
You must either:
- be currently trading but are impacted by reduced demand due to Coronavirus.
- have been trading but are temporarily unable to do so due to Coronavirus.
You must also declare that:
- you intend to continue to trade.
- you reasonably believe there will be a significant reduction in your trading profit.
The SEISS continues to be just one element of a comprehensive package of support for the self-employed. In addition to this, self employed workers can also access other elements of the package which includes Bounce Back Loans, tax deferrals, rental support, mortgage holidays, and other business support grants. Both the government and banks will need all of your paperwork to be up to date and in order to consider you for any loans or grants.
Make sure that you have sent everything in to us, in order and on time so that we can assist you with the best financial options for your business. To discus the SEISS grant, sending your paperwork in or anything accounting related in general, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.
