HMRC has confirmed that the 5th SEISS (Self Employment Income Support Scheme) grant will be available from the end of July. This will cover the period May to September.
The grant is taxable and will be paid out in a single instalment. Guidance for claiming the grant will be available by the end of June 2021.
To be eligible for the grant you must be a self-employed individual or a member of a partnership.
Applicants must have traded in tax year 2019-20 and submitted your tax return on or before 2 March 2021, or in tax year 2020-21.
You must either be currently trading but are impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to coronavirus.
To work out your eligibility for the fifth grant, HMRC will first look at the 2019 to 2020 self assessment tax return. Trading profits must be no more than £50,000 and at least equal to non-trading income.
The amount of the 5th SEISS grant will be determined by how much turnover has been reduced in the year April 2020 to April 2021.
|Turnover reduction||How much will be paid||Maximum grant|
|30% or more||80% of 3 months’ average trading profits||£7,500|
|Less than 30%||30% of 3 months’ average trading profits||£2,850|
The online claims service for the fifth grant will be available from late July 2021.
If you’re eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from. Claims must be made directly by self employed individuals and cannot be processed by agents or accountants.
For further advice contact AJR & Co Ltd