SEISS Calculations Confirmed

HMRC has published detailed guidance for the fifth Self-Employment Income Support Scheme (SEISS).

The guidance confirms that the online service for the fifth grant will be available from late July 2021. HMRC will contact those who are eligible in mid-July based on their tax returns. The closing date for the scheme is 30 September 2021.

To make a claim for the SEISS grant self-employed individuals will need to meet all criteria in stages 1, 2 and 3.

• Stage 1: You must be a self-employed individual or a member of a partnership. You must also have traded in both tax years: 2019 to 2020 and 2020 to 2021.
• Stage 2: You must have submitted your 2019 to 2020 tax return on or before 2 March 2021 which shows trading profits of no more than £50,000. Trading profits must also be at least equal to your non-trading income. If you’re not eligible based on the trading profits on the 2019 to 2020 return, HMRC will look at previous years.
• Stage 3: When making a claim you must tell HMRC that you intend to keep trading in 2021 to 2022 and reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021.

The guidance states that self-employed individuals will need to provide two turnover figures when making a claim. These figures will be the turnover for;

1. A 12-month period starting between 1 April 2020 and 6 April 2020
2. Either 2019 to 2020 or 2018 to 2019

HMRC will compare the figures to work out how much individuals will receive.

The grant is split into two eligibility criteria’s;

• If your turnover is down by 30% or more, the grant will be 80% of 3 months’ average trading profits, capped at £7,500.
• If your turnover is down by less than 30%, the grant will be 30% of 3 months’ average trading profits, capped at £2,850.

Aspire Comment:

Whilst the initial announcement came as a relief to those self-employed individuals who have suffered over the extended periods of lockdown seen over the past months, it is imperative that these individuals are maintaining a full record evidencing that their business has had reduced activity, capacity or demand due to Covid-19.

It is clear that HMRC will be seeking to recover any money which has been incorrectly claimed through the SEISS and so, it remains essential that individuals stay up to date with the ever-changing guidance and legislation and ensure that their claims are accurate.

Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.