- The fifth grant will open for applications at the end of July 2021. This grant and the amount you can claim will differ from previous SEISS grants.
On 26 March the UK Government announced financial support for individuals who are self-employed and have been negatively affected by COVID-19.
The scheme has been extended to provide two more grants between November 2020 and April 2021.
To be eligible for the grant extension self-employed individuals, including members of partnerships, must:
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The Self Employment Income Support Scheme will provide self-employed individuals or members of partnerships with a taxable grant. The fifth grant will differ from previous grants.
To be eligible for the scheme you need to meet the following criteria:
*This is determined by at least one of the following conditions being true:
Applications for the fifth grant will open at the end of July 2021.
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
HMRC will provide more information and support from early July 2021 to help you work out how your turnover was affected.
How much you’ll get
|Turnover reduction||How much you’ll get||Maximum grant|
|30% or more||80% of 3 months’ average trading profits||£7,500|
|less than 30%||30% of 3 months’ average trading profits||£2,850|
You may be eligible for Universal Credit while you wait for the grant, but the grant will be considered as self-employed income and may affect the amount of Universal Credit you will get. Any Universal Credit claims for earlier periods will not be affected.
This is shown on your tax calculation as either profits from:
HMRC will work out your total trading profit after deducting any allowable expenses such as:
If your annual gross trading income, from one or more trades or businesses is more than £1,000 you can use the tax-free allowances, instead of deducting any expenses or other allowances.
HMRC will work out your share of the partnership’s trading profits by taking all partnership income, and then deduct anything that is non-trading income, such as investment income.
They will not deduct from your trading profits:
This is the amount recorded as ‘total income received’ on your online or paper tax calculation, less your trading income.
HMRC will work out your non-trading income by adding together all your:
To check your eligibility you will need your:
To make a claim you will need your:
You’ll have to confirm to HMRC that your business has been adversely affected by Coronavirus on or after 14 July 2020. Find examples of how your business could have been adversely affected.
Once you’ve submitted your claim, you will be told straight away if your grant is approved. HMRC will pay the grant into your bank account within 6 working days.
You must keep a copy of all records in line with normal self-employment record keeping requirements, including:
You will need to report the grant:
If you're self-employed or member of a partnership find out how your circumstances can affect your eligibility for the scheme.
You must tell HMRC if you think you:
You should tell HMRC as soon as possible if you know you’ve been overpaid or are not eligible for the grant. You may have to pay a penalty if you do not tell them.
Self-employed parents whose trading profits dipped in 2018/19 because they took time out to have children will be able to claim for a payment under the Self-Employed Income Support Scheme (SEISS).
The scheme requires claimants to have traded in 2018/19 with their profits making up at least half of their total income. They must also have submitted a self-assessment tax return on or before 23 April 2020 for the 2018/19 tax year.
The government has ensured parents, including mothers, fathers and those who have adopted, who took time out of trading to care for their children within the first 12 months of birth of the child or within 12 months of an adoption placement, will now be able to use either their 2017-18 or both their 2016-17 and 2017-18 self-assessment returns as the basis for their eligibility for the SEISS.
They will also need to meet the other standard eligibility criteria for support under the SEISS.
You may be able to make a claim if having a new child either:
For this scheme having a new child is any of the following:
You must have been self-employed in the tax year 2017 to 2018 and have submitted your Self Assessment tax return for that year.
You’ll need to confirm to HMRC that being a new parent affected your trading profits or total income in the tax year 2018 to 2019, and provide supporting evidence. You’ll be able to do this for the first and second grant using an online form in August 2020.
You'll be asked to provide information such as:
The AND business team is here to support you.
For further information or if you need help and advice, please get in touch via email or telephone 028 9147 3788.