Self Employed Income Support Scheme – SEISS Update

Some information and an SEISS update, with the deadline for claiming the third SEISS on 29‌‌‌ ‌January 2021.

As with the first and second SEISS grants, the third grant is subject to Income Tax and self-employed National Insurance. It must also be reported on your 2020-21 Self-Assessment tax returns (to be submitted by 31‌‌‌ ‌January 2022).

Confirming a significant reduction in trading profits

Before you make a claim for the third grant, you need to decide if the impact on your business will cause a significant reduction in the trading profits for the tax year you report them in.

HMRC cannot make this decision on your behalf because wider individual business circumstances will need to be considered when deciding whether the reduction is significant.

You do not have to consider any other coronavirus scheme support payments you have already received when deciding whether you reasonably believe that you will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1‌‌‌ ‌November 2020 to 29‌‌‌ ‌January 2021 (period covered by the third grant).

Have you had a letter from HMRC and not claimed?

HMRC have sent letters to customers who they have identified as potentially requiring extra support. At the time of writing to them, the customers had yet to claim for the third SEISS grant, and HMRC believe they may be eligible, depending on the circumstances of their business.

The letter includes:

  • details of the deadline for claiming the third SEISS grant,
  • the digital claim service,
  • and the number of a helpline for those requiring additional support.

If you received a letter from HMRC and are not sure whether it is a scam, please give one of our Tax Managers a call on 01253 874255.

The third SEISS grant and working parents

Unable to work because you have additional caring responsibilities due to school closures? If 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.

Details of the eligibility criteria can be found on GOV.UK.

Other types of work and the third SEISS grant

Due to the impacts of coronavirus, we know that some clients who are usually self-employed are also seeking other forms of work.

If you receive the grant you can:

  1. Continue to work.
  2. Start a new trade or take on other work including voluntary work and duties as a military reservist.

You clients must also declare that you intend to continue to trade.

The fourth SEISS grant

Information about the fourth SEISS grant will be provided on 3‌‌‌ ‌March.

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