SEISS 5th grants must be claimed this month – everything you need to know for applications

Martin Lewis provides warning on fourth SEISS grant deadline

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

SEISS claims for the final set of grants must be made by September 30, 2021. These grants, according to HMRC, should be claimed by those who have seen their business profit impacted by coronavirus from May 1, 2021 up to the present.

To be eligible for the final set of grants, claimants will need to meet criteria from three different stages.

The first involves trading statuses, as claimants must be a self-employed individual or a member of a partnership to qualify.

They must also have traded throughout the 2019 to 2021 tax years.

It is not possible to claim a grant if one traded through a limited company or a trust.

Additionally, claimants must have:

  • Submitted their 2019 to 2020 tax return on or before March 2, 2021
  • Trading profits of no more than £50,000
  • Trading profits at least equal to their non-trading income

Where a claimant is not eligible for a grant based on their 2019 to 2020 trading profits, HMRC will then look back at previous years to see if money can be awarded.

Premium Bonds: September 2021 prize draw results released today [INSIGHT]
State pension: Rishi Sunak urged to lower age to 63 [EXPERT]
IR35 warning: ‘Huge discrepancy’ discovered in HMRC data

Finally, when making a claim, applicants must confirm they intend to keep trading in the 2021 to 2022 tax year.

They must also declare they believe there will be a “significant reduction” in their trading profits as a result of coronavirus.

HMRC notes the fifth grant is different from previous grants as in most cases, when making a claim claimants will need to tell the Government about their business turnover.

This is because different amounts will be awarded based on what the turnover figures are.

To make a claim, freelancers will need to calculate two different figures, one for April 2020 to April 2021, and one for either 2019 to 2020 or 2018 to 2019.

HMRC will then compare these figures to determine how much is paid out.

Should the claimant’s turnover figures be down by 30 percent or more, they’ll get a grant covering 80 percent of three months’ average trading profits, capped at £7,500.

If the turnover is down by less than 30 percent, they’ll get a grant covering 30 percent of trading profits, capped at £2,850.

Claims for the fifth grant can be made online and HMRC warns this should be done by the self-employed workers themselves and not delegated to a tax agent or advisor.

On top of the turnover figures, claimants will need the following when claiming:

  • Self Assessment Unique Taxpayer Reference (UTR)
  • National Insurance number
  • Government Gateway user ID and password
  • UK bank details including account number, sort code, name on the account and address linked to the account

Following a claim, HMRC should pay the grant within six working days, so long as the claimant is eligible.

Records of these grants must be kept as they’ll be needed for Self Assessments and tax concerns.

Source: Read Full Article