The rules on who is eligible to claim have changed. However, any claimants will still need to have submitted a Self-Assessment Tax Return for the tax year 2018 to 2019 showing self-employment income in order to claim (unless one of the existing exceptions applies).
The third grant, which offers 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, will be available covering the period from 1 November 2020 to 29 January 2021. Self-employed people who are eligible and in need of support will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.
Who is eligible
To make a claim for the third grant, claimants must meet a number of conditions, and make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced due to coronavirus.
As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must also be reported on 2020 to 2021 Self-Assessment Tax Returns.
As before, to make a claim for the third grant, claimants must:
· be a self-employed individual or a member of a partnership. They cannot claim the grant if they trade through a limited company or a trust
· have traded in both the tax years 2018 to 2019 and 2019 to 2020.
For the third SEISS grant claimants must also:
· either be currently trading but are impacted by reduced activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus
· declare that they intend to continue to trade, and that they reasonably believe that the impact on their business will cause a significant reduction in their trading profits
· only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.
When deciding whether the reduction is significant, claimants will need to consider their wider business circumstances.
HMRC expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period.
The business must have been impacted on or after 1 November 2020. Claimants must keep evidence to show the impact and reduction in their business activity across the qualifying period.
We will continue to provide updates as the situation arises in order to try and keep you informed of the latest government assistance.
Please be assured, once again, that we are only a phone call away, and do not hesitate to contact us if we can be of any assistance.
Please remember to visit our website www.fc-accountants.co.uk for regular updates and features.
