HMRC is Accepting Applications for the 5th SEISS Grant Now
Author: Shona Humphreys, Chartered Tax Advisor at LHP
If you think your business profit will be impacted by COVID-19 between 1 May 2021 and 30 September 2021, you may qualify for the fifth Self Employed Income Support Scheme (SEISS). Unlike the previous four SEISS grants, turnover is considered this time.
How the grant will be calculated exactly
The level of grant awarded will be dependent upon whether turnover is down by more (or less) than 30%. You will need to look at your turnover for a 12-month period starting between 1-6 April 2020, which will be compared to your turnover in your accounting period ending in the tax year 2019/20, or 2018/19, if 2019/20 was not a normal year for you. For example, you might have lost a large contract or had a new child.
If you’re a member of a partnership, your turnover depends on whether you were a member for the whole year in question, or whether you have another trade. Remember in addition to the impact to business turnover test, you must satisfy these other qualifying conditions:
- you must have traded in both tax years 2020/21 and 2019/20
- you must have submitted your 2019/20 tax return on or before 2 March 2021
- your trading profits were of no more than £50,000
- your trading profits are equal to or more than your non-trading income
You must also intend to keep trading for the current 2021/22 tax year. You cannot claim the grant if you trade through a limited company or a trust.
Next steps
To work out your eligibility and to calculate your turnover to claim the 5th grant, visit the following links or get in touch with our team who can help.
Government Guidance on claiming SEISS:
Working out your turnover to claim the 5th grant on Gov.uk:
https://www.gov.uk/guidance/work-out-your-turnover-so-you-can-claim-the-fifth-seiss-grant
Let’s Talk
Contact us now to discuss if you’re eligible for the 5th SEISS grant or if you’re struggling to calculate your turnover. We help thousands of clients with their grant support through difficult times and with over 85 years’ experience, you are in safe hands. Let’s Talk.
