Chancellor Announces Further SEISS Grants
With a more focussed eligibility too ...
POSTED BY ROGER EDDOWES ON 05/10/2020 @ 8:00AM
The hugely successful Self-Employment Income Support Scheme is being extended into 2021; however the scope narrows to bring it in line with the Job Support Scheme, so the third and fourth grants are less generous ...
SEISS has been brought in line with the Job Support Scheme in only supporting viable jobs!
copyright: mavoimage / 123rf
Further details have emerged and they confirm that the criteria for self-employed individuals to be eligible to claim SEISS are changing. A taxpayers must:
Be eligible for the previous SEISS grants, although not necessary have claimed either
Be trading at the time the grant is claimed
Have the intention to continue trading
Be impacted by reduced demand due to the pandemic during the qualifying period
The third grant will run from 1st November to whatever date HMRC allows individuals to claim. The fourth grant will run from 1st February to the date for that claim. The terms 'actively trading' and 'impacted by reduced demand' are additional eligibility criteria, and HMRC will publish more guidance on this as clarification before it opens the claim portal.
"If you had to close due to Coronavirus and didn't reopen again during the qualifying period, you won't be able to claim!"
This decision was made to bring SEISS in line with the Job Support Scheme in only supporting viable jobs where people are working at least a third of their usual hours. This new 'impacted by reduced demand' criteria is far narrower than the previous 'adversely affected' and far fewer self-employed people are going to fall into that category.
The third and fourth SEISS grants will be based on the exact same tax years as before, so anyone who only filed a 2019/20 self-assessment tax return will not be considered for the scheme!
The amount of the third grant will be a taxable sum of 20% of average monthly trading profits and will be paid out in a lump sum. This will be capped at £1,875, which offers broadly the same amount of support that is being given to employees via the Job Support Scheme.
I'll bring you more information on the third and fourth SEISS grants as HMRC make it available.
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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