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Latest information from HMRC regarding self employed support with the third SEISS grant
Applications are now open for the third SEISS grant to support self-employed people affected by coronavirus (COVID-19).
The rules on who is eligible to claim are different to those for the previous SEISS grants. However, a Self Assessment tax return for the tax year 2018 to 2019 showing self-employment income (unless one of the existing exceptions applies) will still need to have been submitted in order to claim.
The third grant will be based on 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, and will cover the period from 1 November to 29 January 2021. Self-employed people who are eligible will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.
As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must be reported on 2020 to 2021 Self Assessment tax returns, due by 31 January 2022.
What customers should do to get ready
Who is eligible
To make a claim for the third grant, customers must meet a number of conditions, and make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced due to coronavirus.
As previously, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on 2020-2021 Self Assessment tax returns.
To make a claim for the third grant, customers must – as previously:
For this third SEISS grant customers must also now:
When deciding whether the reduction is significant, customers will need to consider their wider business circumstances.
HMRC expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period.
Their business must have been impacted on or after 1 November 2020. Customers must keep evidence that shows how their business has been impacted by coronavirus, resulting in reduced activity, capacity or demand, or a temporary inability to trade.
More information and further support
More information and examples are available on GOV.UK to help you check eligibility to claim.
If you would like to discuss how we can help you call 01962 715671 or email me, [email protected].
A fourth grant will also be available from February 2021 to April 2021. We’ll tell you more about that nearer the time, including how much it will be and the rules for claiming.
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