Full details of the third SEISS grant to support self-employed people affected by coronavirus have been published on GOV.UK.
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.
What should I do to get ready?
- Check who is eligible to claim as this is different to the previous SEISS grants.
- Be aware that, like SEISS 1 and 2, we cannot claim this grant on behalf of clients. Applying online is quick and easy. Similar to the process for SEISS 1 and 2, it takes just 5 minutes and you can do it on a smartphone.
Am I 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 also be subject to Income Tax and self-employed National Insurance and must also be reported on 2020 to 2021 Self Assessment tax returns.
As before, to make a claim for the third grant, customers must:
- be self-employed or a member of a partnership. They cannot claim the grant if they trade 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 customers must also:
- either be currently trading but are impacted by reduced business activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus
- declare that they intend to continue to trade, or restart trading, and that they reasonably believe that the impact on their 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 make a business eligible for the third SEISS grant.
When deciding whether the reduction is significant, customers will need to consider their wider business circumstances.
HMRC expects 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. Claimants 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.
When you are ready to claim – you can claim using the link below after considering the above information.
You must make your claim between 30 November 2020 and 29 January 2021.