HMRC publishes guidance on the fifth SEISS grant – including a new ‘turnover test’…

HMRC have released full details of the fifth Self-Employment Income Support Scheme (SEISS) grant, including a new turnover test which determines the levels of grant which you are eligible for. Read our blog as we explain what has changed…

 

WHO CAN CLAIM THE FIFTH SEISS GRANT?

Before you claim, you must ensure you meet all the eligibility criteria listed below.

You must:

  • be self-employed or a member of a partnership;
  • have traded in tax years 2019/20 and 2020/21;
  • have submitted your 2019 /2020 tax return on or before 2 March 2021;
  • have trading profits of no more than £50,000;
  • have trading profits at least equal to your non-trading income (non-trading income refers to any money that you make outside of your business e.g., if you also have a part-time job or pension);
  • intend to keep trading in 2021/2022; and
  • reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021.

These criteria are unchanged from the fourth grant.

 

HOW DOES THE FIFTH SEISS GRANT DIFFER FROM PREVIOUS GRANTS?

HMRC have introduced the ‘turnover test’ – claimants will need to provide two turnover figures which will determine how much money you will receive.

The two figures required are for:

  • April 2020 to April 2021 (the pandemic period)
  • either 2019 to 2020 or 2018 to 2019 (the reference period)

If the 2019/20 tax year was representative of a ‘normal’ pre-covid year for your business, then use this figure. If not, you can use your turnover from 2018/19.

For more in-depth guidance on how to calculate your turnover, visit the Gov website here.

If you started trading in 2019 to 2020 and did not trade in the following tax years, you will not need to provide any turnover figures:

  • 2018/19
  • 2017/18
  • 2016/17

 

HOW MUCH CAN I CLAIM?

The amount you will receive from the fifth grant is based largely on the ‘turnover test’ (unless you did not trade in the tax years mentioned above).

The ‘turnover test’ considers how much your turnover has changed in the 2020/21 tax year due to the pandemic, in comparison to 2019/20 or 2018/19.

The table below highlights how the reduction in turnover will affect the grant amount:

How much your turnover has reduced byWhat you’ll getMaximum grant amount
30% or more80% of 3 months’ average trading profits£7,500
less than 30%30% of 3 months’ average trading profits£2,850

 

If you do not need to provide turnover figures, you will receive 3 months’ average trading profits, with a maximum grant amount of £7,500.

 

WHEN CAN I CLAIM?

The online service for the fifth grant will be available from late July 2021.

HMRC have now begun contacting those who may be eligible for the fifth self-employment income support scheme (SEISS) grant, based on tax returns. When contacted, either by email, test message, letter or within the online service, you will be provided with a date from which you are able to submit your claim – all claims must be submitted on or before 30 September 2021.

For further information on the fifth SEISS grant, including other help which may be available, 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.

 

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