SELF-EMPLOYED GRANT

The deadline for claiming the third SEISS grant is fast approaching. If you  are eligible, you must make the claim on or before 29‌‌‌ ‌January 2021.

As with the first and second SEISS grants, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on the  clients’ 2020-21 Self Assessment tax returns (to be submitted by 31‌‌‌ ‌January 2022).

IMPACT : Confirming a significant reduction in trading profits

Before the  clients make a claim for the third grant, they must decide if the impact on their business will cause a significant reduction in their trading profits for the tax year they report them in.

HMRC cannot make this decision on behalf of the taxpayer  because their individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

The taxpayer  has  to consider any other coronavirus scheme support payments they have already received when deciding whether they reasonably believe that they will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1‌‌‌ ‌November 2020 to 29‌‌‌ ‌January 2021 (period covered by the third grant).

Supporting clients

HMRC  recently sent a letter to customers who they  have identified as potentially requiring extra support.

The third SEISS grant and working parents

If the  clients are unable to work because they have additional caring responsibilities due to school closures, and they meet all other conditions, they are eligible to claim, provided they reasonably believe that the impact of taking this time off will significantly reduce their trading profits for the year that they report them in. 

Other types of work and the third SEISS grant

Due to the impacts of coronavirus, we know that some customers who are usually self-employed are also seeking other forms of work.

If the  clients receive the grant they can:

1. Continue to work.
2. Start a new trade or take on other work including voluntary work and duties as a military reservist.

Your clients must also declare that they intend to continue to trade.

The fourth SEISS grant

Information about the fourth SEISS grant will be provided on 3‌‌‌ ‌March.