Claims for the 4th Self-Employed Income Support Scheme grant have now closed, but the 5th SEISS grant will soon open. To qualify for this, you must be self-employed or be a member of a partnership and you must have traded in the tax years 2019-20 (and submitted your tax return before 2nd March 2021).
Like the 4th grant, this one uses your tax return to decide what you can claim. If you’re not eligible based on your 2019 to 2020 tax return, they will look at your past tax returns all the way back to 2016/2017 if needed.
When can the 5th SEISS grant claim be made?
If you are eligible, and this will be based on your tax returns, HMRC should get in touch with you in mid-July 2021. They will then give you a date that you can make a claim from.
Am I likely to be able to claim the 5th SEISS grant?
To decide if you are eligible for the grant, HMRC will look first at your 2019 - 2020 Self Assessment Tax Return. Your trading profits for this period must be at least equal to your non-trading income and they must be no more than £50,000.
If HMRC carries out this check and finds out that, based on 2019-2020, you aren’t eligible, they’ll look at your past tax returns for previous years. This could be all the way back to 2016/2017 if needed.
How is the 5th SEISS grant different to previous grants?
You need to be aware that the amount you receive in the 5th grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
It is HMRC's plan to provide more support and information by the end of June 2021 and this will help you to work out how your turnover was affected.
What do I need to do to claim the 5th SEISS grant?
In effect, you don't have to do anything yet as HMRC will be in touch with you if you are eligible and will then give you a date that you can make your claim from.
The 4th and 5th SEISS grant schemes have been different to the previous three as decisions are based on your Self-Assessment Tax Return. This process is thought to have identified 3.4 million individuals who could qualify for a SEISS grant.
To make a successful claim you must have every intention of continuing to trade and you’ll need to declare this. You must also declare that you believe there will be a sizable reduction to trading profits.
If you are claiming you will need to keep evidence to show that your business has been impacted by the pandemic and there is less business than you’d usually expect. Keep the key phrases in mind here:
It is the business owner’s responsibility here to make an honest assessment showing that you reasonably believe that there is a significant reduction in profits. Further information as well as a breakdown of how much you will be granted, is available on HMRC’s website.
Our office is based in West Bridgford, Nottingham, but M.A.D Accountants supports businesses and individuals nationwide. If you’re looking for more specific SEISS grant guidance, get in touch with the team.
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