Martin Lewis outlines details on the fifth SEISS grant
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SEISS has helped millions of self-employed workers over the last year or so and from late July, freelancers will be able to make a claim for a fifth grant if they’re still impacted by coronavirus. Ahead of this, HMRC has updated its rules on turnover reporting.
HMRC detailed: “You need to work out your turnover for a 12-month period, starting on any date from April 1 to 6, 2020.
“You can use one of the following periods:
- April 1, 2020 to March 31, 2021
- April 2, 2020 to April 1, 2021
- April 3, 2020 to April 2, 2021
- April 4, 2020 to April 3, 2021
- April 5, 2020 to April 4, 2021
- April 6, 2020 to April 5, 2021
“You should check that your figure is accurate. HMRC will be able to check your figures after you submit your tax return for this period.
“Your figure must include the turnover from all of your businesses.”
HMRC went on break down where these turnover figures can be found:
- Claimants can refer to their 2020 to 2021 Self-Assessment tax return if they’ve completed it
- Claimants can check their accounting software if they use any
- Claimants can go through their bookkeeping or spreadsheet records that cover their self-employment invoices and payments received
- Claimants can check the bank account they use for their business to account for money coming in from customers
- Claimants can ask their accountant or tax adviser if they have one
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To be eligible for a fifth SEISS grant, a claimant must meet all criteria stages which are split into three sections.
Stage one: Your trading status and when you must have traded
Claimants must be a self-employed individual or a member of a partnership.
They must also have traded in 2019 to 2021 tax years.
It will not be possible to claim a grant if the claimants traded through a limited company or trust.
Stage two: Tax returns and trading profits
Claimants must have submitted their 2019 to 2020 tax return on or before March 2, 2021, have trading profits of no more than £50,000 and their trading profits must be at least equal to their non-trading income.
Non-trading income is defined as any money made outside of the business, for example, if the claimant also has a part-time job or pension.
If a claimant is not eligible based on the trading profits in their 2019 to 2020 return, HMRC will then look back at previous years.
Eligible claimants should be contacted by HMRC soon if they’re eligible, if they haven’t been already.
Stage three: Deciding if you can claim
When making a claim, claimants must tell HMRC that they intend to keep trading in 2021 to 2022, and they “reasonably believe there will be a significant reduction in their trading profits due to the impact of coronavirus between May 1, 2021 and September 30, 2021.
HMRC noted the fifth grant will be different from previous grants.
It explained: “In most cases, when making your claim you’ll need to tell us about your business turnover so we can work out your grant amount.
“Turnover includes the takings, fees, sales or money earned or received by your business.
“To make your claim, you’ll need to have two different turnover figures. You’ll need to work out your turnover for: April 2020 to April 2021 and either 2019 to 2020 or 2018 to 2019.”
HMRC will then compare these figures to work out how much is paid out.
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