AMENDED GUIDANCE ON FIFTH SEISS GRANT
The fifth Self-Employment Income Support Scheme (SEISS) grant has been open for claims since the end of July 2021. On 20 August HMRC amended its guidance regarding qualifying turnover. What’s changed?
HMRC has made changes to its SEISS guidance for working out business turnover. The changes relate to subcontractors in the construction industry and business partners.
For subcontractors the new guidance confirms that the amount of turnover for 2020/21 or an earlier year they must use for their claims is that before any construction industry scheme deductions.
For business partners, the amended guidance clarifies how individuals who became partners during 2020/21 should calculate their turnover for that year. It says “you need to work out your percentage share of the partnership’s turnover. It will be the same percentage of profit you took from the partnership in the 12-month period, April 2020 to April 2021.”
SELF-EMPLOYED COVID-19 SUPPORT
SELF-EMPLOYMENT INCOME SUPPORT SCHEME GRANT EXTENSION
14th November 2020
The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two further grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.
1. Who can claim
To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:
have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
declare that they intend to continue to trade and either:
are currently actively trading but are impacted by reduced demand due to coronavirus
were previously trading but are temporarily unable to do so due to coronavirus
2. What the Grant Extension covers
The extension 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 third grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
There will be a fourth grant that will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of this grant and set this in due course.
The grants are taxable income and also subject to National Insurance contributions.
3. How to claim
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
We will provide a link to the application form as soon as this is available from HMRC.
Please feel free to contact us should you have any questions, or require any assistance.