Claims for the third SEISS grant must be submitted by 29 January 2021. 

The timing of the deadline for claims for the third Self Employment Income Support Scheme (SEISS) grant is perhaps unfortunate, clashing as it does with the self assessment filing deadline.

 Some additional considerations were introduced for the third grant, please take a moment to consider them:

 

  1. The “Significant Reduction In Trading Profits” test
  • To be eligible for the Grant you have to be able to demonstrate a “significant reduction in trading profits” through your business being adversely affected by Coronavirus;
  • When assessing whether there has been a significant reduction in trading profits, the comparison period is not specified in HMRC’s guidance; you can use
    • the previous year; or
    • an average of say the last three years trading profits; or
    • a reduction against an earlier forecast for the relevant basis period
  • In considering whether you are eligible for the grant, you do not need to take into account the first and second SEISS grants, nor any other COVID-19 government support payments received.

 

  1. What Is The Eligibility Period?
  • The eligibility period for the third grant is 1 November 2020 to 31 January 2021;

 

  1. What If I Have More Than One Trade?
  • If you operate more than one trade it is sufficient to show that one of the trades has suffered reduced activity, capacity, or demand, or has been temporarily unable to operate since 1 November 2020;
  • You should be able to demonstrate that this will cause a significant reduction in the profits compared with what they would otherwise have expected for that trade;
  • You do not have to consider upon all trades operated together.

 

  1. Do I Need To Report SEISS Grants On My Future Tax Returns?
  • YES.
  • SEISS grants are all taxable in the 2020/21 tax year, whatever date you prepare accounts to.
  • No element of the SEISS grants should be reported in the 2019/20 self assessment tax returns that are due to be filed by 31 January 2021;

 

  1. Is There A Fourth Grant?
  • The Government has announced that there will be a fourth grant, covering the period February to April 2021.
  • The conditions for the fourth grant, and the amount, have not yet been released.

Barrons has put together a helpful guide to running your business during the coronavirus crisis.