Martin Lewis gives advice on the launch of the third SEISS
The third SEISS grant has now opened for applications, after Chancellor Rishi Sunak announced earlier this year the scheme would be extended. In total two more SEISS grants will cover November 2020 to April 2021, and each grant will cover three-month periods.
What is the SEISS third grant worth?
The third SEISS grant has been subject to several changes in light of the second national lockdown in England throughout November.
David Gibb, financial planner at Quilter, told Express.co.uk: “The Government’s income support packages have provided a financial lifeline for many struggling as a result of the pandemic, and will no doubt continue to act as a safety net over the difficult winter period.
“The Government has extended the SEISS for the winter with a further two taxable grants.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
“The first covers the three-month period from the start of November until the end of January and will cover 80 percent of average monthly trading profits, up to the cap of £7,500.
“Bear in mind that most these grants are taxable, and are subject to the usual National Insurance contributions.
“This is far more generous than what the government previously announced, as Mr Sunak was initially prepared to cover only 20 percent of average profits, up to a cap of £1,875.”
Applications for the third SEISS grant must be made on or before January 29, 2021.
There will be a fourth SEISS grant to come, which will cover February to April 2021.
However HMRC have not yet announced how much the fourth installment will be worth.
The SEISS website currently states: “There will be a fourth grant covering February 2021 to April 2021.
“We will set out further details, including the level of the fourth grant in due course.”
SEISS eligibility: Thousands have ‘fallen through cracks’ [INTERVIEW]
SEISS: Small business owners intend to remain self-employed – why? [ANALYSIS]
SEISS grant 4: When will the next self-employed grant be available? [INSIGHT]
Can you claim self-employed grant and still work?
Claimants who are eligible for SEISS can claim the third grant and still work.
Citizens Advice explain: “You’re allowed to keep working and still get money from the scheme.
“You can also get another job as an employee somewhere else.”
But Citizens advice add claimants should remember they are only eligible for the scheme if they plan to continue trading in this tax year.
Also, any money from the scheme is taxable, which means claimants may have to pay more tax.
Self-employed individuals and members of partnerships must have traded in both the 2018 to 2019 tax year and the 2019 to 2020 tax year to claim SEISS.
Claimants must have submitted their Self Assessment tax return on or before April 23, 2020 for the 2018 to 2019 tax year.
Claimants must also be currently trading but impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to the pandemic.
Claimants must also declare that they “intend to continue to trade”, and that they “reasonably believe” there will be “significant reduction” in trading profits.
Source: Read Full Article