CORONAVIRUS UPDATE
Self-Employment Income Support Scheme (SEISS)
Fourth Claim
What period does the grant cover?
February 2021 to April 2021 inclusive.
When can the SEISS claim be made?
If you are eligible, HMRC should contact you around mid-April 2021 to provide you with a date from which you can make the claim through the online portal.
The final deadline for making the claim will be 31st May 2021.
How is the grant calculated?
It is 80% of your average monthly trading profits, covering a 3 month period.
The maximum claim is restricted to £7,500.
What is the eligibility criteria for the 4th grant?
You must have been self-employed during the 2019/20 and 2020/21 tax years.
You must have submitted your 2019/20 Tax Return by 2nd March 2021.
If you commenced trading during the 2019/20 tax year, you must have provided the information requested by HMRC when they carried out a pre-verification check on you sometime between 8th March and mid-April 2021.
You must either be trading but impacted by reduced demand due to the pandemic OR have been trading but are temporarily unable to do so to the pandemic.
You must intend to continue to trade.
You must reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to the pandemic.
Your self-employed profits for 2019/20 tax year must be no more than £50,000 and represent at least 50% of your total 2019/20 income.
What is meant by ’reasonably believe’ and ‘significant reduction’?
You must have experienced reduced activity, capacity or demand or to be temporarily unable to trade in the period from 1st February 2021 to 30th April 2021, compared with what could reasonably have been expected but for the adverse effect on the business due to the pandemic.
You must reasonably believe the impact will cause significant reduction in trading profits for the relevant accounting period as a whole (not just the 3 months ending 30th April 2021), compared with what would otherwise have reasonably been expected as a result of that reduced activity, capacity of demand.
What records should be kept
- Keep a copy of the amount claimed.
- The claim reference number.
- Evidence that at the time of making the claim you had reason to believe that the trading profits were going to be significantly reduced.
- Evidence to show the impact and reduction in their business activity across the period..
Important to note
The grant will need to be reflected within your self-employed accounts and will be liable to tax and national insurance.
Keeping a copy of evidence backing up the reasons for your claim will help should HMRC look to review your claim in the future.
To make the claim, you will need;
- Government Gateway user ID and password
- UK bank details including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account
Please note; We as agents cannot apply on your behalf – you must make the application yourself using your own Government Gateway.
The MDH team are here to support you
If the above will have an impact on your of your business, please book in a 30 minute call with Michael or Natalie to discuss.
Join our private Facebook page for Croydon & Surrey Business Owners.
