Article published on 26/11/2020

In light of recent decisions to put the UK into a 3-tiered lockdown system once again, the UK government are extending the SEISS so that a third grant will be available soon. The third SEISS will be made available to self-employed people who’s business have been affected by coronavirus (COVID-19).

If you were not eligible for the first and second grant based on the information in your Self-Assessment tax returns, you will not be eligible for the third. You are expected to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits over the period of 1 November 2020 and 29 January 2021.

How do I know if I am eligible?

If you are currently trading but have reduced demand: You must keep any evidence that your business has had reduced activity, capacity or demand due to coronavirus at the time you made your claim, such as:

  • business accounts showing reduction in activity compared to previous years
  • records of reduced or cancelled contracts or appointments
  • fewer invoices
  • a record of dates where you had reduced demand or capacity due to government restrictions

If your business is temporarily unable to trade: You must keep evidence if your business has been unable to trade due to coronavirus, such as:

  • a record of dates where you had to close due to government restrictions
  • NHS Test and Trace communications – if you’ve been instructed to self-isolate in-line with NHS guidelines and are unable to work from home (if you’ve been abroad and have to self-isolate, this does not count)
  • a letter or email from the NHS asking you to shield
  • test results if you have been diagnosed with coronavirus
  • letters or emails from your child’s school if you have had parental caring responsibilities

How much can I claim?

The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment, and capped at £7,500 in total.

How do I claim?

If you are eligible and would like to claim this grant, you can make your application via the web portal. You must make your claim for the third grant on or before 29 January 2021 in order to receive the payment.

If you are eligible, the grant does not need to be repaid, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self-Assessment tax return.

What will I need to make a claim?

In order to make a claim for the third SEISS grant, you will need:

  • Self Assessment Unique Taxpayer Reference (UTR)
  • National Insurance Number
  • Government gateway user ID and password
  • UK bank details, including: bank account number, sort code, name on the account, and the address linked to your account.

If you have any questions regarding the SEISS, or would like to see if we think you are eligible, please contact your usual Partner or Manager who will be happy to help.

 

 

Author: Michael McLoughlin