The fifth SEISS grant will open to self-employed claimants at the end of July. After emailing general information about the grant at the start of July, if you're eligible, HMRC should contact you in the next couple of weeks with your personal claim date ...
However, you should be aware that the eligibility of this grant is different from the previous four, as it now includes a new turnover test to determine the level of the grant. You'll get either 30% or 80%, depending on the results of the test.
"So, you could get 80% of three months' average trading profits again!"
But only if your turnover has reduced by 30% or more. If the reduction is less than 30%, you will get a grant based on 30% of three months' average trading profits instead, capped at £2,850.
Of course, before you take the test, HMRC has to believe your eligible in the first place, which is why they'll email you soon. If you were eligible for the previous grants, then you'll probably be eligible for this one too if you:
have submitted your 2019/20 self-assessment tax return before the 2nd of March 2021
you've traded in 2019/20 and 2020/21
are currently trading, but are still impacted by reduced demand because of coronavirus, or have been trading, but are still unable to do so because of the pandemic
you intend to continue trading
and reasonably believe there will be a significant reduction in your trading profits in the period from the 1st of May 2021 to the 30th of September 2021
Also, your trading profit must be no more than £50,000. It must be at least half of your total income:
for the tax year 2019/20
or the average of the tax years 2016/17, 2017/18, 2018/19 and 2019/20
This criteria remains the same as the fourth grant.
The turnover test will be the stumbling block for many expecting a significant payment. A claimant needs to provide two total turnover figures during the claims process.
You should look these up from your tax returns before starting the claim, and remember, HMRC already know these numbers, so there's no point in stretching the truth as they'll be checked when they process your claim.
HMRC will email you soon if they think you're eligible to claim the fifth SEISS grant and will explain what turnover numbers they will need from you to make your claim.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook.
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.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.