skip to navigationskip to main content

Self-Employment Income Support Scheme – Fifth Grant

The fifth grant under the Self-Employment Income Support Scheme (SEISS) will be available from late July 2021.  If HMRC believe an individual may be eligible to make a claim they will contact them in mid-July to provide a date that the claim can be made from.  A claim must be made on or before 30 September 2021.

The fifth grant should be claimed if business profits will be impacted by coronavirus between 1 May 2021 and 30 September 2021.  To be eligible to make a claim the following criteria must be met:

  1. You must be a self-employed individual or a member of a partnership and you must also have traded in both the 2019/20 and 2020/21 tax years.
  2. You must have submitted your 2019/20 tax return on or before 2 March 2021, have trading profits of no more than £50,000 and have trading profits at least equal to your non-trading income.
  3. You must intend to keep trading in 2021/22 and reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021.

The fifth grant is different from previous grants in that when making a claim individuals will need to inform HMRC about the business turnover so they can work out of the grant amount.

The grant amount will be either:

  • If turnover is down by more than 30%:  80% of 3 months average trading profit capped at £7,500
  • If turnover is down by less than 30%: 30% of 3 months average trading profit capped at £2,850

Turnover

To make a claim, 2 different turnover figures will be needed.  Turnover will need to be worked out for:

  • The 12-month period starting on any day between 1 April 2020 and 6 April 2020; and
  • Either 2019/20 or 2018/19.

HMRC will then compare these figures to work out how much grant will be rewarded.

The 12-month period starting on any day between 1 April 2020 and 6 April 2020

You can find your 2020/21 turnover figures by:

  • referring to your 2020/21 Self Assessment tax return (if completed);
  • checking your accounting software (if used);
  • checking bookkeeping or spreadsheet records;
  • reviewing your bank account;
  • asking your accountant.

Do NOT include the following in your turnover figures:

  • previous SEISS grants;
  • Eat Out to Help Out payments;
  • local authority grants;
  • anything reported as other income on your tax return.

Members in a partnership will have to work out their percentage share of the partnership’s turnover.  For 2018/19 or 2019/20 this will be the same as the percentage of profit you took from the partnership in the year in question, even if your profit share percentage changed in 2020/21.

Either 2019/20 or 2018/19

You must use the turnover reported in your 2019/20 tax return as the reference year.  The figure needs to be based on a 12-month period and include the total turnover for all your businesses.  If 2019/20 was not a normal year for your business, you can use the turnover reported in your 2018/19 tax return.  Your records should show how 2019/20 was not a normal year for you.

Depending on your business setup and how you file your return, turnover can be found in any of the following boxes on your tax return:

  • SA200 (Self Assessment short tax return) – box 3.6
  • SA103S (self-employment section – short) – box 9
  • SA103F (self-employment section – full) – box 15
  • SA800 (partnership tax return) – box 3.24 or 3.29

Full HMRC guidance on the fifth Self-Employment Income Support Scheme grant can be found here.

Working with you

Looking for pro-active accountants who'll help you make more profit and be more tax efficient?

cfw-about-us-320x200px.jpg

About us

We work closely with our clients and act for a broad range of business....

cfw-get-in-touch-320x200px.jpg

Get in touch

Simple way to contact us. Just fill in a simple form.

cfw-services-320x200px.jpg

Our services

Find out details about what we can do
for you.

Artboard 3
acca-platinum
image/svg+xml