Online claims for the fifth SEISS grant covering May 2021 to September 2021 will open from ‘late July’ according to HMRC.
Eligibility for the fifth grant will again depend on taxpayers being either self-employed or a member of a partnership and having traded in the previous two tax years. Taxpayers must intend to continue trading and expect to see a ‘significant reduction in trading profits’ due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period covered by the claim.
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; and
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.
One point to note is that basic eligibility is tied to a significant reduction in ‘trading profits’, but the amount of the grant will be based on reduction in ‘turnover’.
As for previous payments, the grant will be taxable and will be paid out in a single instalment. HMRC will publish guidance on claiming the grant, and information to help businesses calculate how turnover has been affected, by the end of June 2021.
Online claims for the fifth SEISS grant covering May 2021 to September 2021 will open from ‘late July’ according to HMRC.
Eligibility for the fifth grant will again depend on taxpayers being either self-employed or a member of a partnership and having traded in the previous two tax years. Taxpayers must intend to continue trading and expect to see a ‘significant reduction in trading profits’ due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period covered by the claim.
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; and
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.
One point to note is that basic eligibility is tied to a significant reduction in ‘trading profits’, but the amount of the grant will be based on reduction in ‘turnover’.
As for previous payments, the grant will be taxable and will be paid out in a single instalment. HMRC will publish guidance on claiming the grant, and information to help businesses calculate how turnover has been affected, by the end of June 2021.
