Your last chance to claim the Self Employment Income Support Scheme grant
It's been a lifeline for the self-employed during the pandemic, but SEISS is set to come to an end. The good news is there's one last payment available and JOSH RUTHVEN from our Accounts Department explains the rules surrounding a claim.
The fifth and final Self Employment Income Support Scheme (SEISS) grant is almost here, as HMRC have released details about the support for self-employed individuals covering the period May to September. They have announced they will contact eligible people in mid July to give them a date for when they can submit their claim. This claim will be different to the previous four, as it covers a five- month period instead of the usual three, and this time turnover across the previous financial year will be factored in.
Who is eligible?
There are three conditions to be eligible to claim the fifth grant. These are as follows:
- You must be a self-employed individual or member of a partnership who has traded in both the 2019/20 and 2020/21 tax years.
- You must have submitted your 2019/20 tax return on or before 2 March 2021 and have trading profits of no more than £50,000. Trading profits must also be at least equal to your non-trading income.
- You must intend to keep trading in 2021 and 2022 and reasonably believe there will be a significant reduction in your trading profits from 1 May 2021 through to 30 September 2021.
What do you need to make the claim?
This time, the level of the grant claimable depends on whether an individual's turnover has dropped by more than 30%. Before you make your claim, therefore, you will need to work out your turnover for a 12-month period, starting from 1 April 2020 to 6 April 2021. You must also find your turnover from either 2019/20 or 2018/19 to use as a reference year. The turnover figure for 2020/21 should not include any previous SEISS claims, local authority grants and Eat Out to Help Out payments.
Turnover includes the “takings, fees, sales or money earned or received” by a person's business. You can find the amount of turnover by referring to recent Self Assessment tax returns or by going through bookkeeping and spreadsheet records.
If you are a member of a partnership, you need to use the partnership's total turnover figure.
How much can I claim?
The grant will be 80% of three months' average trading profits, capped at £7,500 for those whose turnover has reduced by 30% or more. Those with a turnover reduction of less than 30% will receive a grant based on 30% of three months' average trading profits, capped at £2,850.
The claim deadline for the fifth and final grant is 30 September 2021.
If you feel you're entitled to claim but want some advice or support, please call 0115 9555500 or email enquiries@pagekirk.co.uk.