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What is a SEISS Grant?
The government’s Self-employment Income Support Scheme (SEISS) can be described as the self-employed version of the Coronavirus Job Retention Scheme (CJRS) for employed people.
While you’ll still owe Income Tax and National Insurance on any money you get through the SEISS, it’s a grant rather than a loan. That means you won’t need to pay it back.
When can I apply for SIESS Grant 5?
The Government has announced the details of the 5th Self-Employment Income Support Scheme (SEISS grant 5) grant.
This will cover from May 2021 to September 2021.
The amount you are eligible to receive depends on how much your business has suffered due to the COVID-19 pandemic.
Who is eligible for the SEISS Grant 5?
Most of the eligibility criteria are the same as the fourth SEISS grant. These are:
- 2019-20 trading profits must be £50,000 or less and at least equal to non-trading income.
- 2019-20 Tax Return must have been submitted by at latest 2nd March 2021
- Your trading must have been negatively impacted by the COVID-19 pandemic
- You must either be trading, or temporarily unable to do so because of COVID-19
- You must intend to continue to trade and must reasonably expect a significant reduction in trade between May and September due to the COVID-19 pandemic.
There is a key difference from previous grants. The amount for which you are eligible depends on how badly your business has been affected. This is determined by how much your turnover has dropped between April 2020 and April 2021.
If your turnover has decreased by 30% or more, you will be entitled to the full grant, which is 80% of three months’ average trading profits, capped at £7,500.
If your turnover has reduced by less than 30%, then you will be entitled to 30% of three months average trading profits capped at £2,850.
Anything else about the Self-Employment Income Support Scheme?
This grant is taxable, like previous SEISS grants. Claims will open from late July 2021.
HMRC will release further guidance at the end of June 2021, and they will start contacting eligible taxpayers in July 2021, though you can still apply without being contacted by HMRC.
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