The 5th Self Employed Grant (SEISS) will open late July - But it's a bit different
Round 5 of SEISS will open to applicants late July 2021 and will cover reduced self employed profits for the period May 2021 to September 2021.
The grant is taxable and will be paid out in a single instalment as per previous grants.
However this grant is a little different as the government begin to phase out their COVID relief.
To be eligible you must
1. Have traded in the tax years:
2019 to 2020 and submitted your tax return on or before 2 March 2021
2020 to 2021
2. You must either:
be currently trading but are impacted by reduced demand due to coronavirus
have been trading but are temporarily unable to do so due to coronavirus
The calculation however will be different this time, with the amount of grant available dependent on how much your Turnover has been reduced because of COVID, between April 2020 and April 2021. HMRC WILL ISSUE GUIDANCE ON HOW TO WORK THIS OUT IN LATE JUNE 2021.
The amount of grant you will be eligible to recieve therefore will depend on the reduced turnover.
If turnover has fallen 30% or more because of COVID, then you will again be able to claim 80% of 3 months’ average trading profits (up to a maximum of £7,500)
If turnover has fallen less than 30% because of COVID, then you will again be able to claim 30% of 3 months’ average trading profits (up to a maximum of £2,850)
As before, you must declare that:
you intend to continue to trade
you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
We'll release more info as and when HMRC announce how they intend for sole traders to work out the turnover reduction, although as always we stress the importance of keeping full and accurate records to ensure that you are acting appropriately in making your claim.