Martin Lewis discusses eligibility for third SEISS grant
Millions of self-employed workers continue to face uncertainty in terms of their business’s future after the UK, alongside the rest of the world, was plunged into a pandemic. The SEISS grant scheme has been in place since the first lockdown, allowing people who can’t trade to claim money from the Government. Earlier this month, the Treasury announced SEISS would continue until April 2021 as the country grapples with new variants and a mass vaccination programme.
The online service to apply for the third SEISS grant is now available and is open to applications until January 29, 2021.
Chancellor Rishi Sunak confirmed the third grant, covering November to January, will be calculated at 80 percent of average trading profits, up to a maximum of £7,500.
The fourth grant will cover a three month period from February 1, 2021, until April 30, 2021.
All of the grants are classed as taxable income and are subject to National Insurance contributions and credits.
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Who can claim SEISS?
If you weren’t eligible for the first and second grant based on the information on your Self Assessment tax returns, then you won’t qualify for the next one.
The Government writes: “HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
“To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between November 1, 2020 and January 29, 2021, which you reasonably believe will have a significant reduction in your profits.”
To be eligible, you have to be a self-employed individual or a member of a partnership, and you can’t claim if you trade through a limited company or a trust.
You must have traded in both tax years:
- 2018 to 2019 and submitted your Self Assessment tax return on or before April 23, 2020 for that year
- 2019 to 2020
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You must either:
- Be currently trading but are impacted by reduced demand due to coronavirus
- Have been trading but are temporarily unable to do so due to coronavirus
You must also declare that:
- You intend to continue trading
- You reasonably believe there will be a significant reduction in your trading profits
When is the 4th SEISS grant available?
The Treasury has confirmed a fourth grant will be available for the self-employed to see them through the next few months.
As it stands, however, it’s unclear when the fourth SEISS grant will be available to claimants.
Considering the third grant is still open for applications, you can’t apply for the fourth one yet and the Government hasn’t provided any clarity as to when this could be.
More information should be available in due course, and the Chancellor should release more details on Government support packages in his upcoming March Budget.
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