Final Seiss 5 Grant Pushed Back To Early July
Crucial guidance on the final Self-Employment Income Support Scheme (SEISS) grant has been pushed back to early July according to sources.
Earlier this month HM Revenue & Customs (HMRC) published the latest policy paper detailing how the fifthfinal SEISS grant will be offered to struggling workers.
In the paper it originally said further guidance for claiming the final SEISS grant would be available by the end of June 2021.
However according to financial consumer expertTV presenter Martin Lewis, this date has been pushed back to early July.
Martin Lewis said via social media: “CONFIRMED: The detailed info on the SEISS 5, the Self Employment Grant won’t now be out until early July (it had been expected was late June).
“The claims window for the grant 5 should still open late Julypeople will be contacted with their personal claim date from mid-July.”
To be eligible for the grant, workers must be a self-employed individual or a member of a partnership, which includes thousands of local taxi drivers.
In the paper it stated the fifth grant will cover May 2021 to September 2021will be open to claims from late July 2021.
Like previous SEISS payments the grant is taxablewill be paid out in a single instalment to eligible claimants.
The Claimant Must Have Traded In The Tax Years
- 2019 to 2020submitted your tax return on or before 2 March 2021
- 2020 to 2021.
The Worker Must Also Be Either
- be currently trading but are impacted by reduced demand due to coronavirus
- have been trading but are temporarily unable to do so due to coronavirus.
To work out eligibility for the fifth grant, HMRC first look at your 2019 to 2020 Self Assessment tax returnTrading profits must be no more than £50,000at least equal to your non-trading income.
If the worker is not eligible based on their 2019 to 2020 tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 20192019 to 2020.
When Claiming For The Fifth Grant Workers Must Declare That
- they intend to continue to trade
- they reasonably believe there will be a significant reduction in their trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021.
Workers claiming must keep evidence that shows how their business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC expects them to make an honest assessment about whether they reasonably believe the business will have a significant reduction in profits.
The amount of the fifth grant will be determined by how much the claimant’s turnover has been reduced in the year April 2020 to April 2021.
It remains unclear at this point whether previous SEISS paymentsLocal Authority grants will be included in the trading turnover, which could impact how much the claimant will receive.
The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens.
People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850.
According to HMRC the online claims service for the fifth grant will be available from late July 2021.
If a worker is eligible based on their tax returns, HMRC will contact them in mid-July 2021 to give them a date that they can make their claim from.
