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Self Employed Income Support Scheme (SEISS) Third Grant Claim

Self Employed Income Support Scheme (SEISS)
Third Grant Claim
What period does the grant cover?
  • November to January 2021 inclusive.
  • How is the grant calculated?
  • It is 80% of your average monthly trading profits for the three tax years ended 5 th April 2019, covering a 3 month period.
  • The maximum claim is restricted to £7,500.
  • What is the eligibility criteria for the 3rd Grant?
  • You must have been eligible for the first and second SEISS claims. You can still be eligible even if you did not make a claim.
  • You must have traded in the 2018/19 and 2019/20 tax years.
  • You must now be trading but are impacted by reduced demand due to the Covid-19 pandemic.
  • Or
  • You have been trading but are temporarily unable to do so due to Covid-19 pandemic.
  • You intend to continue to trade.
  • You reasonably believe that there will be a significant reduction in your trading profit covering the period 1st November to 29th January 2021.
  • When deciding whether the reduction is significant, you need to consider your wider business circumstances.
  • What is meant by ’reasonably believe’ and ‘significant reduction’?
  • You have reason to believe that you will suffer a significant reduction in trading profit due to reduced business activity, capacity or demand or an inability to trade due to Covid-19 restrictions covering the 3 month period to the end of January 2021.
  • What is not deemed to be a significant reduction?
  • A reduction in profit due solely due to an increase in costs such as buying masks, cleaning supplies, screens and other PPE equipment will not be sufficient for a claim to be made.
  • If you have gone on holiday and have had to self-isolate for 14 days and this is the only thing to impact your business.
  • HMRC examples of what is and what is not allowable can be found on the link below: How your trading conditions affect your eligibility for the Self-Employment Income Support Scheme - GOV.UK (www.gov.uk)
    When can the SEISS claim be made?
  • The Gov.UK online portal will opened on 30th November 2020.
  • You will have until 29 th January 2021 to make a claim.
  • HMRC state that you should only make your claim when you have a reasonable belief that your trading profits are going to be significantly reduced.
  • What will you need to make the claim?
  • Your Unique Taxpayers Reference number.
  • Your National Insurance number.
  • Government Gateway ID and password.
  • Bank account and sort code.
  • What records should be kept
  • Keep a copy of the amount claimed.
  • The claim reference number.
  • Evidence that at the time of making the claim you had reason to believe that the trading profits were going to be significantly reduced.
  • Evidence to show the impact and reduction in their business activity across the period from November to January 2021 inclusive.
  • Important to note
  • The grant will need to be reflected within your self-employed accounts and will be liable to tax and national insurance.
  • The eligibility criteria is tighter than in respect of the first two SEISS claims and so you may want talk to us before you make the claim.
  • Keeping a copy of evidence backing up the reasons for your claim will help should HMRC look to review your claim in the future.

  • If you wish to discuss this or other issues please do contact us.
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