The Government has updated its information about the fifth Self Employment Income Support Grant (SEISS).
If you’re eligible based on your tax returns, HMRC will contact you from mid-July to give you a date that the claims service will be available to you from. It will be given to you either by email, letter or within the online service. The online service to claim the fifth grant will be available from late July 2021. You must make your claim on or before 30 September 2021.
To be eligible you must meet all criteria in stages 1, 2 and 3.
Stage 1: Your trading status and when you must have traded
You must be a self-employed individual or a member of a partnership. You must also have traded in both tax years:
- 2019 to 2020
- 2020 to 2021
You cannot claim the grant if you trade through a limited company or a trust.
Stage 2: Tax returns and trading profits
You must have:
- submitted your 2019 to 2020 tax return on or before 2 March 2021
- trading profits of no more than £50,000
- trading profits at least equal to your non-trading income
Non-trading income is any money that you make outside of your business. For example, if you also have a part-time job or pension.
If you’re not eligible based on the trading profits in your 2019 to 2020 return, the government will look back at previous years.
Stage 3: Deciding if you can claim
When you make your claim you must tell us that you:
- intend to keep trading in 2021 to 2022
- 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
There are some changes with the fifth grant:
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
How much you’ll get
Turnover reduction How much you’ll get Maximum grant
30% or more 80% of 3 months’ average trading profits £7,500
less than 30% 30% of 3 months’ average trading profits £2,850
In most cases, you’ll need to provide 2 turnover figures when you make your claim. HMRC will use these to work out how much you’ll get.
You do not need turnover figures if you started trading in 2019 to 2020 and did not trade in the following tax years:
- 2018 to 2019
- 2017 to 2018
- 2016 to 2017
If your business recovers after you’ve claimed, your eligibility will not be affected as this is based on your reasonable belief that your trading profits would have been significantly reduced at the time you made your claim. You must keep evidence to support this.
If you’re currently trading but have reduced demand:
You must keep any evidence that your business has had reduced activity, capacity or demand due to COVID-19 at the time you made your claim, such as:
- business accounts showing reduction in activity compared to previous years
- records of reduced or cancelled contracts or appointments
- a record of dates where you had reduced demand or capacity due to government restrictions
If your business is temporarily unable to trade
You must keep evidence if your business has been unable to trade due to COVID-19, such as:
- a record of dates where you had to close due to government restrictions
- NHS testing and tracing communications – if you’ve been instructed to self-isolate in-line with NHS guidelines and are unable to work from home
- a letter or email from the NHS asking you to shield
- test results if you’ve been diagnosed with COVID-19
- letters or emails from your child’s school with information on closures or reduced hours
Find out how your circumstances affect your eligibility for the scheme here: https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme