Self Employment Income Support Scheme no 5 - UPDATE
Posted on 8th July 2021 at 14:42
SEISS Grant no 5 - What's involved:
HMRC will contact those eligible (as based on tax returns submitted), from the middle of July to give a date as to when the claims service will be available to you. This will either be by email, letter or within the online service.
The online service to claim the fifth grant will be available from late July 2021. Claims must be made on or before 30 September 2021.
How To Prepare (before making your claim):
1. Work out your turnover for a twelve month period starting from between 1 April 2020 to 6 April 2020.
2. Find your turnover from either 2019 to 2020, or 2018 to 2019 to use as a reference year.
* HMRC have issued guidance stating the need to inform them about your turnover, if you submitted a tax return for your business in 2019 to 2020, including any of the following tax years: 2018 to 2019, 2017 to 2018 and 2016 to 2017.
If you started or ceased a business in 2020 to 2021 then you should include the turnover received between April 2020 to April 2021, even if this covers less than twelve months.
For accounting periods longer or shorter than twelve months, turnover will need to worked out to cover the twelve month period.
Turnover figures can be obtained by:
• Asking your Accountant / Tax advisor
• Referring to your 2020 to 2021 Self-Assessment tax return (if completed)
• Checking your accounting software
• Going through your bookkeeping or spreadsheet records that cover your self-employment invoices and payments received
• Checking the business bank account to account for credits / monies received from customers
* What not to include:
• Anything reported as any other income on your tax return
• Any COVID-19 support payments, including previous SEISS grants, 'Eat Out to Help Out' payments & local authority or devolved administration grants
• If you have more than one business then your figure provided must include the total turnover for all of your businesses.
• If you are a member of a Partnership and have no other businesses then you will need to use the partnership’s total turnover figure.
• If you are a member of a Partnership and you have other businesses, then for each Partnership you will need to include your percentage share of the partnership’s turnover. (This will be the same as the percentage of profit you took from each partnership in this year. You must add this to the turnover from your other businesses).
In most cases, you must use the turnover reported in 2019 to 2020 tax return as a reference year. The figure needs to be based on a twelve month period and must include the total turnover for all businesses.
* This can affect the claim and could entitle you to a higher grant:
If 2019 to 2020 was not a normal trading year for your business, then you can use the turnover reported in the 2018 to 2019 tax return. Your records should demonstrate how 2019 to 2020 was an exceptional year. Reasonable exceptions include:
• Lost a large contract
• On carers leave
• Long term sick leave or had a new child
• Carried out reservist duties
How turnover affects the amount of the grant when making the claim:
The online service will ask for your turnover figures and will compare them for you. The claims service will then inform you if you can claim the higher or lower grant amount.
If your turnover is down by 30% or more:
Your grant will be worked out at 80% of three months average trading profits (capped at £7,500)
If your turnover is down by less than 30%:
Your grant will be worked out at 30% of three months average trading profits (capped at £2,850)
HMRC's guidance does stress the importance of making the claim yourself. It states that if your accountant or anyone else makes the claim on your behalf then it will trigger a fraud alert.
We can however assist you with making your claim, so please do 'Contact Us' for help and assistance
For full details, please refer to: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances - please seek professional advice and contact us on the above details.
Tagged as: Self Employment Income Support Scheme
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