The fifth Self Employment Income Support Scheme (SEISS) claim is now open. If eligible, you should have received correspondence from HM Revenue & Customs with details containing a specific date on which you can make your claim from.
Eligibility
The eligibility criteria which existed for SEISS grants 1, 2, 3 and 4 remains the same.
You must:
- Be self employed, or a member of a partnership and traded in both 2019/20 and 2020/21 tax years;
- Have submitted your 2019/20 tax return on or before 2 March 2020;
- Have trading profits for 2019/20, or on average for the four tax years including 2019/20, more than nil but no more than £50,000;
- Have total trading profits for 2019/20 or on average for the four tax years including 2019/20, more than total non-trading income;
- Intend to keep trading in 2021/22.
If you continue to meet these criteria, to make a claim, you must reasonably believe that there will be a significant reduction in your trading profits for the relevant basis period (i.e. period your business profits are calculated for) as a result of the impact coronavirus has had on your business from 1 May 2021 to 30 September 2021.
Reasonable belief
You must reasonably believe that you’ll suffer a significant reduction in trading profits in the relevant basis period due to reduced business activity, capacity, demand or inability to trade due to coronavirus between 1 May 2021 to 30 September 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected and how this has significantly reduced your business profits for the relevant basis period.
It is advised that you should wait until you have a reasonable belief that your trading profits are going to be significantly reduced before you make your claim.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
How much you will get
For the fifth grant, there are two levels. The amount received will be determined by the amount your turnover has decreased in the 12 months from April 2020 to April 2021 compared to the turnover in either 2019/20 or 2018/19.
| Turnover decrease | Entitlement | Maximum Grant |
| 30% or more | 80% of 3 months’ average trading profits | £7,500 |
| Less than 30% | 30% of 3 months’ average trading profits | £2,850 |
You will be required to calculate your turnover for the 12 months from April 2020 to April 2021 before you claim. Guidance on how to do this can be found on HMRC’s website here.
Penalties
If you claim the fifth grant and HMRC later determines that you were not eligible to do so, penalties of up to 100% of the grant received may be issued including interest.
If you deem yourself as eligible for the fifth SEISS grant, please note that the claim must be made on or before 30 September 2021. Claims can be made by following the link here.
Should you have any queries or require any assistance, please contact either Aoife Breslin at our Strabane office or Ryan Henry at our Omagh Office.
The above article is for general guidance and informational purposes only and is not intended to constitute legal or professional advice. It should not be taken as specific advice for your own circumstances and relied upon. You are advised to take professional advice before taking any action in relation to the above matters.
