HMRC Portal for Third Self Employed Income Support (SEISS) Grants Opens From 30 November 2020
Post Author:
Rona Burns
Date Posted:
November 26, 2020
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The HMRC portal for the third Self Employed Income Support Scheme grant opens from 30 November 2020.
What period does this grant cover?
The third grant covers the period from 1 November 2020 to 29 January 2021
How long do I have to make a claim?
From the date that HMRC advise you that the portal opens for you until 29 January 2021.
How much am I entitled to?
Eligible taxpayers will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits), paid in a single instalment.
Please see our earlier blog for the full details of how HMRC work out the average trading profits.
The grant will be treated as part of your taxable income for 2020/2021.
How and when will I get the grant?
The grant will be paid directly into your bank account in one instalment.
We understand that the payment will be made within 6 days of a successful claim being made.
How do I apply?
Anyone eligible for the scheme will be able to apply directly to HMRC for the taxable grant using an online form.
As for the first and second grants, HMRC will contact you, if they believe that you are eligible for the scheme and will invite you to apply online.
Beware of scammers
The only way to access the scheme will be via the Gov.UK website. HMRC have warned that if anyone texts, calls or emails claiming to be from HMRC, advising that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.
What are the conditions for applying?
To be eligible for the third grant you must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust.
You must have traded in both the tax years:
- 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
- 2019 to 2020
AND you must either:
- be currently trading but are impacted by reduced demand due to Coronavirus. For example, you:-
have fewer customers or clients than you would normally expect, resulting in reduced activity due to social distancing or government restrictions
have one or more contracts that have been cancelled and not replaced
carried out less work due to supply chain disruptions
Or:
- have been trading but are temporarily unable to trade due to coronavirus. For example: –
your business has had to close due to government restrictions
you have been instructed to shield or self-isolate in-line with NHS guidelines and are unable to work from home (note if you have been abroad and have had to self-isolate, this does not count)
you have tested positive for coronavirus and are unable to work
you cannot work due to parental caring responsibilities, for example as a result of school or childcare facility closures
AND You must also declare that:
- you intend to continue to trade
- you reasonably believe there will be a significant reduction in your trading profits
What is reasonable belief?
In order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021.
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
What is significant reduction?
Before making a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.
HMRC have published guidance on this with examples: –
Note that they state that you must not claim if the only impact on your business is increased costs. For example, if you have had to purchase face masks and cleaning supplies. This would not be considered as reduced demand.
You can read more about the scheme here: –
https://jsca.co.uk/self-employed-income-support-scheme-update/
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
Photo by Andrew Coop on Unsplash
