The third Self-Employment Income Support Scheme grant (SEISS) for eligible self-employed and members of a partnership, impacted by COVID-19 is now open for claims.
If you were not eligible for the first and second Self-Employed Income Support grant, (based upon information provided in your tax returns) you will not be eligible for this grant, although we understand you do not have to have applied for these grants to apply for this third grant. You must have also experienced a significant reduction in profits due to COVID-19.
This third grant (which is taxable) is calculated at 80% of average monthly trading profits. This is provided as a single payment, covering 3 months’ worth of profits, capped at £7,500.
Whilst the grant does not need to be repaid, it is subject to Income Tax and self-employed National Insurance, which must be reported on your 2020/21 Self Assessment tax return.
How do I know if I’m eligible for the Self-Employment Income Support Scheme (SEISS)?
Self-employed individuals or a member of a partnership are eligible to apply. A claim cannot be made for those trading through a limited company or a trust. Maternity Allowance will not affect your eligibility for the grant, if this is being claimed.
You must have traded in both the 2018/19 and 2019/20 tax years. For the 2018/19 tax year, a Self Assessment tax return is needed to have been submitted on or before 23 April 2020.
£50,000 is the maximum trading profits allowed and at least equal to your non-trading income. If individuals are not eligible based on the 2018/19 tax return, HMRC will consider the 2016/17, 2017/18, and 2018/19 tax years.
Additionally, those eligible must either be trading and impacted by reduced demand, due to COVID-19 or have been trading, but temporarily unable to do so, because of COVID-19.
Claimants also need to make a declaration that they intend to continue to claim and that they reasonably believe they will experience a significant reduction in claiming profits.
Self-Employment Income Support Scheme –Making your claim
Claims are now open and can be made using HMRC’s online service. This can be accessed here. Claims must be made on or before 29.01.2021.
HMRC has issued a warning regarding suspicious emails, texts and phone calls/voice messages. These short be reported to HMRC and correspondence should only be through your Government Gateway account, or direct with HMRC.
How can Alexander & Co help?
Further information can be found on the gov.uk website. A fourth grant, which is to cover February 2021 to April 2021, has also been announced. Details of this, including the level of payment and how to apply, will be set out in due course. Keep an eye on our news section for additional information.
Personal tax advice enquiries
For any further enquiries or assistance, contact our team of personal tax advisors who are dedicated to helping the self-employed with all aspects of tax advice, from Capital Gain’s Tax to Entrepreneur’s Relief.
Fil out the form below or get in touch on 0161 832 4841.