Martin Lewis outlines details on the third self employment grant
SEISS is formally known as the Self-Employment Income Support Scheme and has been in place since 2020, but was extended to provide further support. This meant a third and fourth grant have been made available into 2021 to reflect the ongoing nature of the crisis. SEISS three is intended to cover November 2020 to January 2021 with a grant worth 80 percent of a person’s average monthly trading profits.
This is paid out in a single instalment, covering three months worth of profits and capped at £7,500.
However, there is an important deadline approaching this month when it comes to SEISS.
If a person is eligible, they must make a claim for the third grant on or before January 29, 2021, leaving just over a week to take action.
It is therefore vital for self-employed people to understand the details, including eligibility rules, for the grant ahead of time.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
In order to make a claim, a person’s business must have had a “new or continuing impact from coronavirus” between November and January.
They must believe this impact will have a significant reduction in their profits to receive a sum.
Individuals must have traded in 2019/20, but also in 2018/19, and have submitted their Self Assessment tax return on or before April 23, 2020.
Britons must also either be currently trading but have experienced reduced demand due to coronavirus, or have been trading but have been temporarily unable to do so due to the virus.
State pension payments will rise this year – some pensioners miss out [ANALYSIS]
Winter Fuel Payment should have been issued by this week – act now [INSIGHT]
State Pension UK: ‘Now is the time’ to review your forecast and plans [EXCLUSIVE]
A person must also declare the following:
- They intend to continue to trade
- They ‘reasonably believe’ they will have a reduction in their trading profits
Those claiming SEISS must also keep evidence to show how their business has been impacted by COVID-19.
When it comes to determining what constitutes a ‘significant reduction’ in profits, the government has advised this is a decision which must be determined on a case by case basis.
It explained: “HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.
“You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.”
Eligibility for the scheme is based on a person’s tax returns and HMRC will look at an individual’s 2018/19 Self Assessment first.
To access the scheme, it is required an individual has trading profits of no more than £50,000.
In addition, these profits must be at least equal to someone’s non-trading income.
People can make a claim for the third grant through the online service, available on the government’s official website.
After a person has claimed, the grant should be paid into their bank account within six working days.
Britons should expect to receive an email to confirm the payment is on its way.
After this point, many will be looking forward towards announcements on the fourth grant, which is set to cover February 2021 to April 2021.
However, the government has said the details of this support, including eligibility, will be announced in due course.
Source: Read Full Article