The Treasury has published details of the fifth grant under the Self-employment Income Support Scheme (SEISS) along with the required Treasury Direction which gives formal effect to the scheme under the Coronavirus Act 2020. Key details include the following.
In mid-July HMRC will contact those who, based on their tax returns, will be eligible for the fifth grant, giving them a date from which they can make a claim. The online service for claims will open in late July 2021 and claims will need to be made by 30 September 2021.
HMRC has set out three-stage eligibility criteria:
First, a person must have traded in both 2019/20 and 2020/21 tax years.
Second, the person must:
have submitted their 2019/20 tax return on or before 2 March 2021;
have trading profits of no more than £50,000; and
have trading profits at least equal to their non-trading income.
Third, taxpayers must also declare that they:
intend to continue to trade in 2021/22; and
reasonably believe there will be a significant reduction in their trading profits due to Covid-19 between 1 May 2021 and 30 September 2021.
HMRC has also provided updated detailed guidance on how trading conditions affect claims, including the meanings of ‘reasonable belief’ and ‘significant reduction’.
To claim the fifth grant businesses will need two turnover figures and to work out the turnover for:
a 12-month period starting between 1 April 2020 and 6 April 2020; and
either 2019/20 or 2018/19 (to use as a reference year).
HMRC has provided detailed guidance on how to work out these turnover figures.
The amount of the fifth grant will be determined by the reduction in turnover in the year from April 2020 to April 2021, as follows:
where turnover is reduced by 30% or more, the grant will be 80% of 3 months’ average trading profits, up to a maximum of £7,500;
where turnover is reduced by less than 30%, the grant will be 30% of 3 months’ average trading profits, up to a maximum of £2,850.
The Treasury has published details of the fifth grant under the Self-employment Income Support Scheme (SEISS) along with the required Treasury Direction which gives formal effect to the scheme under the Coronavirus Act 2020. Key details include the following.
In mid-July HMRC will contact those who, based on their tax returns, will be eligible for the fifth grant, giving them a date from which they can make a claim. The online service for claims will open in late July 2021 and claims will need to be made by 30 September 2021.
HMRC has set out three-stage eligibility criteria:
First, a person must have traded in both 2019/20 and 2020/21 tax years.
Second, the person must:
have submitted their 2019/20 tax return on or before 2 March 2021;
have trading profits of no more than £50,000; and
have trading profits at least equal to their non-trading income.
Third, taxpayers must also declare that they:
intend to continue to trade in 2021/22; and
reasonably believe there will be a significant reduction in their trading profits due to Covid-19 between 1 May 2021 and 30 September 2021.
HMRC has also provided updated detailed guidance on how trading conditions affect claims, including the meanings of ‘reasonable belief’ and ‘significant reduction’.
To claim the fifth grant businesses will need two turnover figures and to work out the turnover for:
a 12-month period starting between 1 April 2020 and 6 April 2020; and
either 2019/20 or 2018/19 (to use as a reference year).
HMRC has provided detailed guidance on how to work out these turnover figures.
The amount of the fifth grant will be determined by the reduction in turnover in the year from April 2020 to April 2021, as follows:
where turnover is reduced by 30% or more, the grant will be 80% of 3 months’ average trading profits, up to a maximum of £7,500;
where turnover is reduced by less than 30%, the grant will be 30% of 3 months’ average trading profits, up to a maximum of £2,850.
