Following the announcement earlier this week, it has been confirmed that two further grants will be issue to eligible self employed individuals.
Most importantly, the assessment period for these grants have now been updated to include your 2019/20 tax year figures. Meaning those newly self employed individuals may now be eligible, should they intend to continue to trade. Similarly those who’s trading income was not classed as their main source due to the 50% rule may now also be eligible.
While we await further clarification next week, this is what we know:
- As previously, the grants will be based on average profits and are taxable
- To be eligible the business must have been adversely affected by COVID-19
- Claims open Mid April
- The grant will cover February to April 2021
- You will receive 80% of average profits for 3 months, capped at £7,500
- New eligibility tests looking at the 2019/20 tax year
- You must also have traded in both tax years – 2019/20 & 2020/21
- Your 2019/20 tax return must have been submitted by 2 March 2021
- You must 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
- You must also declare that you intend to continue to trade and that you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus.
Fifth (and final) Grant
- Claims open late July
- The grant will cover May to September 2021
- Eligibility as before
- The amount you receive will be determined by how much your turnover has been reduced in 2020/21.
- 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more.
- 30% of 3 months’ average trading profits, capped at £2,850. for those with a turnover reduction of less than 30%.
SEISS grants will be taxed when received from 2021/22.
Further details will be provided in due course.