From the end of July, a fifth self-employment income support scheme (SEISS) will become available.
The grant aims to support businesses negatively affected by the ongoing pandemic and will cover the period of May to September 2021.
This grant is taxable and will be paid out in a single instalment.
Guidance for claiming the grant will be available by the end of June 2021.
To be eligible for the grant you must be a self-employed individual or a member of a partnership.
Applicants must also have traded in tax year 2019-20 and submitted a tax return on or before 2nd of March 2021, or in tax year 2020-21.
Further, your business must have been directly affected by the pandemic, i.e., you are currently trading but have been impacted by reduced demand, or you have been trading but are temporarily unable to do so due to the coronavirus.
To work out your eligibility for the fifth grant, HMRC will first look at your 2019 to 2020 self-assessment tax return.
Trading profits must be no more than £50,000 and at least equal to non-trading income.
The amount of the fifth grant will be determined by how much turnover has been reduced in the year April 2020 to April 2021.
Turnover reduction | How much will be paid | 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 |
The online claims service for the fifth grant will be available from late July 2021.
If your tax returns render you eligible, HMRC will contact you in mid-July 2021, and give you a date that you can make your claim from.
It is important to note that all claims must be made directly by self-employed individuals. In other words, they cannot be processed by agents or accountants.
Need a knowledgeable, dedicated, and honest team to take care of all your accounting needs, with no delays or hidden costs? Simply call 01254 589799 today! Alternatively, you can fill in a contact form, or send us an email at info@gowandpartners.co.uk.
