In the Spring Budget 2021, the Government confirmed that the Self-Employment Income Support Scheme (SEISS) would be extended to provide a fourth and fifth grant. HMRC have now confirmed the fifth grant will cover the period from May 2021 to September 2021 and applications will open from late July 2021.
Who can claim the fifth SEISS grant?
To be eligible for the fifth grant you must be self-employed or a member of partnership, and you are unable to claim the grant if you trade through a limited company or trust.
Additionally, you must have traded in the tax year 2019 to 2020, the tax year 2020 to 2021 and submitted your 2019-2020 tax return on or before 2 March 2021.
You must also either:
- be currently trading but impacted by reduced demand due to coronavirus; or
- have been trading but are temporarily unable to do so due to coronavirus
Regarding the second point, in order to claim, you must ‘reasonably believe’ that you will suffer a significant reduction in trading profits, due to reduced business activity, capacity, demand or inability to trade as a result of coronavirus between May 2021 and September 2021. You do not have to consider any other coronavirus scheme support payments which you may have received previously when deciding whether the reduction in profit is significant.
Remember to keep evidence that illustrates how your business has been impacted by coronavirus. HMRC have confirmed that they expect claimants to make an honest assessment about whether you ‘reasonably believe’ your business will have a significant reduction in profits.
How does the fifth grant differ from previous grants?
Unlike previous grants, the amount you are able to claim under the fifth grant is determined by the extent to which your turnover has reduced between April 2020 and April 2021.
If turnover has reduced by 30% or more, business owners are able to claim 80% of 3 months’ average trading profits, capped at £7,500, which will be paid in a single instalment.
If turnover has reduced by less than 30%, claimants will receive 30% of 3 months’ average trading profits, capped at £2,850, which will also be paid in a single instalment.
HMRC are due to release more detailed guidance regarding the above by the end of June 2021, therefore we will update our blog in due course.
How to claim
The online claims service for the fifth grant will be available from late July 2021. Those who are deemed as eligible based on tax returns will be contacted by HMRC in mid-July 2021 with a confirmed date on which they can submit their claim.
For more information on the fifth SEISS grant, visit the Gov website here.
Get in touch
For advice and support in claiming the fifth SEISS grant, or any other SEISS related queries, please speak to your usual PM+M adviser or email us at enquiries@pmm.co.uk.
