The deadline for claiming the third SEISS grant is fast approaching. If you are eligible, you must make your claim on or before 29 January 2021.
As with the first and second SEISS grants, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on your 2020-21 Self Assessment tax returns (to be submitted by 31 January 2022).
Confirming a significant reduction in trading profits
Before you make a claim for the third grant, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.
HMRC cannot make this decision on your behalf because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.
You do not have to consider any other coronavirus scheme support payments you have already received when deciding whether you reasonably believe that you will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1 November 2020 to 29 January 2021 (period covered by the third grant).
HMRC recently sent a letter to those who they have identified as potentially requiring extra support. At the time of writing to them, the tax payers had yet to claim for the third SEISS grant, and they believe they may be eligible, depending on the circumstances of their business. The letter included details of the deadline for claiming the third SEISS grant, HMRC digital claim service, and the number of a helpline for those requiring additional support.
Details of the extra support HMRC can provide can also be found on GOV.UK.
The third SEISS grant and working parents
If you are unable to work because you have additional caring responsibilities due to school closures, and you meet all other conditions, you are eligible to claim, provided you reasonably believe that the impact of taking this time off will significantly reduce your trading profits for the year that you report them in.
Details of the eligibility criteria can be found on GOV.UK.
Other types of work and the third SEISS grant
Due to the impacts of coronavirus, we know that some people who are usually self-employed are also seeking other forms of work.
If you receive the SEISS grant you can:
- Continue to work.
- Start a new trade or take on other work including voluntary work and duties as a military reservist.
You must also declare that they intend to continue to trade.
The fourth SEISS grant
Information about the fourth SEISS grant will be provided on 3 March.