How to apply for the fifth self-employed grant

How to apply for the fifth self-employed grant

The government has released new guidance for the fifth grant through the Self-employment Income Support Scheme (SEISS). Here’s a summary.

This guide is a summary of the official guidance here. The fifth grant is more complicated than previous grants and we urge you to read the official guidance in full before applying for the grant.

 

The fifth SEISS grant is to cover the period between 1 May 2021 and 30 September 2021. Up to £7,500 is available.

The general eligibility is the same as previous grants but the fifth grant is different in the fact that for most people the value of the grant received is based on the impact of the coronavirus pandemic on your turnover. You may need the support of an accountant or tax agent but they cannot submit an application on your behalf. You must do it yourself.

 

General eligibility for the fifth self-employed grant
You must be a self-employed individual or a member of a partnership. You must also have traded in tax years 2019/2020 and 2020/2021.

 

You must have:
- submitted your 2019 to 2020 tax return on or before 2 March 2021
- trading profits of no more than £50,000
- trading profits at least equal to your non-trading income

If you’re not eligible based on the trading profits in your 2019 to 2020 return, HM Revenue & Customs (HMRC) will look back at previous years.

 

When you make your claim you must tell HMRC that you:
- intend to keep trading in 2021 to 2022
- 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

 

New eligibility rules for the fifth self-employed grant
The fifth grant is different from previous grants. In most cases, when making your claim you’ll need to tell HMRC about your business turnover which will inform how much grant you get.

- Turnover includes the takings, fees, sales or money earned or received by your business.
- To make your claim, you need to have turnover figures for:
- a 12-month period starting between 1 April 2020 and 6 April 2020
- either 2019 to 2020 or 2018 to 2019

 

HMRC will compare these figures to work out how much you’ll get.
- If your turnover is down by 30% or more, you’ll get a grant worth 80% of three months’ average trading profits up to a maximum £7,500.
- If your turnover is down by less than 30%, you’ll get a grant worth 30% of three months’ average trading profits up to a maximum £2,850.

 

What not to include in your turnover figures
- Anything reported as any other income on your tax return. You should also not include any coronavirus support payments such as:
- previous SEISS grants
- Eat Out to Help Out payments
- local authority or devolved administration grants

 

When you do not need turnover figures to claim
HMRC will not ask you for any turnover figures if you started trading in 2019 to 2020 and did not trade in the following tax years:
- 2018 to 2019
- 2017 to 2018
- 2016 to 2017

 

How to make a claim for the fifth self-employed grant
The online service for the fifth grant will be available from late July 2021. You will be able to make a claim until 30 September 2021.

HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.

This guide is a summary of the official guidance here. The fifth grant is more complicated than previous grants and we urge you to read the official guidance in full before applying for the grant.

 

For more details and to read the full article written by Dan Martin, please visit: https://www.enterprisenation.com/learn-something/how-to-apply-for-the-fifth-self-employed-grant/?_cldee=YWxhbmdmQHNpcml1cy1odWxsLmNvLnVr&recipientid=lead-d8d1a59de0cfe911a812000d3a0bad17-e3f1405426cd448d9aacafb69db31b9f&esid=b82fded8-7bde-eb11-bacb-00224840128d