The deadline for the third Self-Employment Income Support Scheme (SEISS) will soon approach
As with the first and second SEISS grants, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on your 2020-21 Self-Assessment tax returns (to be submitted by 31 January 2022).
The basic conditions
To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021.
The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
Applications opened on 30 November and claims must be made by 29 January 2021.
To qualify, applicants must have traded in both tax years 2018/19, and submitted a self-assessment tax return on or before 23 April 2020 for that year, and 2019/20.
Current UK Government guidance
Earlier government policy announcements indicated that to qualify for the third grant, the business needs to not only be adversely affected due to coronavirus but also to:
- be currently trading but be impacted by reduced demand due to coronavirus; or
- have been trading but be temporarily unable to do so due to coronavirus.
In addition the taxpayer must:
- intend to continue to trade; and
- reasonably believe there will be a significant reduction in their trading profits due to reduced activity, capacity or demand or inability to trade due to coronavirus.
It is our understanding that the significant reduction in trading profits test is to be applied to the accounting period as a whole.
The third SEISS grant and working parents
If you were/are unable to work because you had/have additional caring responsibilities due to school closures, and you meet all other conditions, you are eligible to claim, provided you reasonably believe that the impact of taking this time off will significantly reduce your trading profits for the year that you report them in.
Other types of work and the third SEISS grant
If you receive the grant you can:
- Continue to work.
- Start a new trade or take on other work including voluntary work and duties as a military reservist.
SRC-Time are one of the South East’s leading accountancy firms in advising the self-employed and partnerships in all aspects of their tax affairs and we are able to assist in any issue raised above.
Our expert team is available to provide you with advice and can be contacted on 01273 326 556 or you can drop us an email at info@src-time.co.uk or speak with an account manager to get any process started.
