COVID-19: full details of the Self Employment Support Scheme (SEISS) third grant have been released - and HMRC have changed eligibility.
The rules on who is eligible to claim have changed. However, you will still need to have submitted a self-assessment tax return for the 2018/19 tax year showing self-employment income in order to claim.
The third grant, which offers 80% of three months’ average trading profits, paid out in a single taxable instalment 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.
Who is eligible
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 2020/21 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 have traded 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 of your business will cause a significant reduction in their 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 the wider business circumstances.
HMRC now 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.
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.
More information
For more information and examples to help you check eligibility to claim, go to GOV.UK and search for 'Self Employment Income Support Scheme'.
There will also be a fourth grant (covering the three-month period from February 2021 to April 2021). We will update the website when HMRC release further details which will be expected in the new year.
As always, please don’t hesitate to contact us should you require any further clarity or information.