23 Apr 2021
Update: Self Employment Income Support Scheme (SEISS)
The government is currently in the process of contacting eligible tax payers about the fourth Self Employed Income Support Scheme (SEISS).
Unlike previous SEISS grants where the claim window was open to any eligible individual, HMRC will now contact you and provide you with a personal claim date. You have from this date to the 31st May 2021 to make your claim.
Your eligibility will be determined based on your 2019/2020 tax return, as long as the return was submitted by 2nd March 2021. If you are not eligible on these grounds, then previous returns will be taken into account.
The grant is calculated at 80% of 3 months average profits and the grant is capped at £7,500.
Conditions for the grant are:
- Your trading profits must be below £50,000 - , this is the same as previous grants.
- The grant is now open to those who became self-employed in the 2019-2020 tax year.
- You must be currently trading but suffering from are impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to coronavirus.
- You must intend to continue to trade.
- You must reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus.
In line with previous grants you will need to have a government gateway account in place to make your claim, therefore please ensure this is set up as soon as possible to avoid any delays if you are claiming for the first time.
You can set up an account up here: HMRC login page
Please be aware that although this grant covers the period February 2021 to April 2021, following legislation introduced in the Finance Bill 2021, the income is taxable on the date it is received.
This means that the 2 months of grant income for February and March 2021 will be taxed in the 2022 tax year rather than 2021, subsequently increasing your tax bill for the 2022 year.
If you are concerned about the impact that COVID-19 is having on your business or personal finances, or for any other queries you may have please contact your usual Monahans representative or contact your local office.
We are here to help.