The fifth Self-Employment Income Support Scheme (SEISS) grant will be available from the end of July, covering the period May to September 2021.
This grant is different from those that preceded it as the amount of the grant is determined by how much turnover has been reduced in the year April 2020 to April 2021.
Guidance for claiming the grant will be available by the end of June 2021.
To calculate eligibility for the fifth SEISS grant, HMRC will look at the 2019-20 self-assessment tax return. Trading profits must be no more than £50,000 and at least equal to non-trading income.
If applicants are not eligible based on their 2019-20 tax return, then HMRC will look at the tax years 2016-17, 2017-18, 2018-19 and 2019-20.
Applicants must also
- Be self-employed individuals or members of a partnership;
- Have traded in the tax year 2019-20 and submitted a tax return on or before 2 March 2021, OR
- Have traded in the tax year 2020-21;
- 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.
Evidence must be retained to show how businesses have been impacted by coronavirus, resulting in less business activity than otherwise expected. HMRC expects applicants to make an honest assessment about whether it is reasonably believed that there will be a significant reduction in profits.
The grant is taxable and will be paid out in a single instalment.
The amount of the fifth grant will be determined by how much turnover has been reduced in the year April 2020 to April 2021.
- For a turnover reduction of 30% or more, the grant will be 80% of three months’ average trading profits, up to a cap of £7,500;
- For a turnover reduction of less than 30%, the grant will be 30% of three months’ average trading profits, up to a cap of £2,850.
Making a claim
The online claims service for the fifth grant will be available from late July 2021.
All applicants that are eligible based on their tax returns will be contacted by HMRC in mid-July 2021 and provided with a date from which they can make their claim.