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Self-Employment Income Support Scheme (SEISS)

SEISS grants continue to the end of September 2021 in line with employee furlough payments.  The 4th grant closed on 1 June 2021 and the 5th grant, covering May 2021 to September 2021, will be open to claims from late July 2021.

As with previous grants, the 5th grant will be paid out in a single instalment and will be taxable.  This grant will be taxed on your 2021/22 tax return.

To be eligible for the 5th grant you must be a self-employed individual or a member of a partnership and must have traded in the tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021
  • 2020 to 2021

You must also 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

To work out eligibility for the 5th grant, HMRC will first look at 2019 to 2020 Self-Assessment tax returns.  Trading profits must be no more than £50,000 and at least equal to non-trading income.

If you’re not eligible based on your 2019/20 tax return, HMRC will then look at the tax years 2016/17, 2017/18, 2018/19 and 2019/20.

When making the claim you must declare that:

  • you intend to continue to trade
  • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021

Evidence must be kept that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.

The Amount of the Grant

If the above eligibility criteria are met, the amount of the 5th grant will be determined by how much your turnover has reduced in the 2020/21 tax year.  HMRC are expected to provide more information and support by the end of June 2021 to help you work out how your turnover was affected.  If turnover has reduced:

  • 30% or more then the grant will be 80% of 3 months average trading profits up to a maximum amount of £7,500
  • less than 30% then the grant will be 30% of 3 months average trading profits up to a maximum amount of £2,850

The online claims service for the 5th grant will be available from late July 2021 and if you are eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from.

The latest Government guidance on the 5th Self-Employment Income Support Scheme can be found here.

Links

Our previous updates can be found on Facebook and LinkedIn or on our website blog.

A UK Government general COVID-19 support website can be found here.  It contains guidance on all matters pertaining to the Coronavirus.

We continue to monitor the situation and keep you informed.  If you have any concerns, please do not hesitate to contact us.

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