Industry News - 18th August 2021
HMRC has issued guidance on claiming the fifth and final Self-Employment Income Support Scheme (SEISS) grant.
Unlike previous SEISS grants, the amount available for the fifth grant is determined by how much a self-employed individual’s turnover is reduced.
The fifth grant is 80% of three months’ average trading profits capped at £7,500 for those self-employed individuals whose turnover has reduced by 30% or more. Those with a turnover reduction of less than 30% will receive a grant based on 30% of three months’ average trading profits, capped at £2,850.
Claims must be made by 30 September 2021. It is the taxpayer who must make the claim – an accountant or agent cannot submit the claim on their behalf.
Before making a claim taxpayers must:
• work out their turnover for a 12-month period starting on any date from 1 – 6 April 2020
• find their turnover from either 2019/20 or 2018/19 to use as a reference year.
HMRC advises taxpayers will need to have both figures ready when they make their claim.
A taxpayer can calculate their turnover for 2020/21 in a number of ways:
• by referring to their 2020/21 self assessment tax return if this has already been completed
• checking the figures on their accounting software
• reviewing their bookkeeping or spreadsheet records that detail their self-employment invoices and payments received
• checking the bank account they use for their business to account for money coming in from customers
• by asking their accountant or tax adviser for help in calculating the figures. However accountants and agents are unable to make the claim on the taxpayer’s behalf.
Claiming the fifth SEISS grant is not straightforward so please contact us for advice on determining your turnover figures or eligibility.
Internet link:GOV.UK SEISS5