Self-employed taxpayers can now apply for the 5th and final SEISS grant.  Everyone who is eligible should by now have been contacted by HMRC giving them their personal date when they can submit their claim.  Claims have to be made before the deadline of Sept 30.

You can claim this grant if:

  • you traded in 19/20 and submitted your 19/20 tax return by 2 March 2021
  • you have traded in 20/21 and intend to continue trading
  •  you can make a declaration that you reasonably believe that there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 21 to September 21.  Useful examples of what this means in practise are give here
  • you earn at least 50% of your total income from your self-employment
  • you had average trading profit of under £50k per year – initially based on your 19/20 tax return. If you don’t qualify in 19/20 HMRC will look back over the last 4 years returns to work out your average profit over those years.

The criteria for claiming this grant is based on a turnover test, so it is important to have your numbers to hand to work out how much you can claim.

If your turnover has fallen by more than 30%  you will be able to claim the full grant worth 80% of three months’ average trading profits, capped at £7,500. 

However, if your turnover has fallen by less than 30%, you will only claim 30% of three months’ average trading profits, capped at £2,850.

“Turnover” is gross turnover for April 20 – April 21, (not profit) and excludes all Covid-related grants received.

As with the previous grants, the grant is taxable and will need to be declared on your 21/22 tax return.

If you need more information or help with your self-employed accounts and tax, then please get in touch with Rosie Forsyth at Wilkins & C0.