25 Nov Self-Employment Income Support Scheme (SEISS) third grant – HMRC publishes details
HMRC have published details of the SEISS third grant, we’ve summarised the main points below: –
The third grant, which offers 80% of three months’ average trading profits, paid out in a single taxable installment capped at £7,500, will be available covering the period from 1 November 2020 to 29 January 2021. Self-employed people who are eligible and in need of support will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.
Be aware that, like SEISS 1 and 2, we cannot claim this grant on behalf of you; you must do it yourselves. If we try to make a claim on your behalf, it will trigger a fraud alert that will delay the payment. Applying online is quick and easy. Similar to the process for SEISS 1 and 2, it takes just 5 minutes and you can do it on a smartphone.
To make a claim for the third grant, you must meet a number of conditions, and make an honest assessment about whether you reasonably believe your trading profits will be significantly reduced due to coronavirus.
As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must also be reported on 2020 to 2021 Self Assessment tax returns.
As before, to make a claim 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
• have traded in both the tax years 2018 to 2019 and 2019 to 2020.
For the third SEISS grant you must also:
• either be currently trading but are impacted by reduced activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus
• declare that you intend to continue to trade, and that you reasonably believe that the impact on their business will cause a significant reduction in your trading profits
• only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.
When deciding whether the reduction is significant, you will need to consider their wider business circumstances.
HMRC expect claimants to make an honest assessment about whether you reasonably believe your trading profits will be significantly reduced compared to what you would otherwise expect to achieve during this period.
The business must have been impacted on or after 1 November 2020. You must keep evidence to show the impact and reduction in their business activity across the qualifying period.
There will also be a fourth grant (covering the three-month period from February 2021 to April 2021).