Self-employed grant: How has the criteria changed for the third SEISS grant?
The Self-Employment Income Support Scheme was introduced by Chancellor Rishi Sunak in March 2020, and was intended to mirror the support given to the employed under the Government’s furlough scheme. The grant has been extended to cover November 2020 until April 2021, with the third grant covering the three-month period from November to January. Applications for the third grant are now open, but there are some changes to the application process.
Since the SEISS extension was announced, the amount the third grant is worth has changed several times.
Hayley Millhouse, MD at OpenMoney Adviser Services, toldExpress.co.uk: “For those that are eligible, the grant will provide a lump sum up to a maximum of £7,500 to cover up to 80 percent of your average trading profits.
“This scheme was initially set up to cover up to 80 percent of average profits in November, falling to 40 percent in December and January, up to a maximum of £5,160.
“Now however, it covers up to 80 percent of average monthly profits in November, December and January, up to a maximum of £7,500.”
READ MORE: SEISS grant 3: How to apply for the third grant
“Your trading profits must not exceed £50,000 per year, and the majority of your income should come via self-employment.”
The third grant criteria requires claimants to declare they will continue trading.
Claimants of the third grant must also declare they “reasonably believe” they will experience a “significant reduction” in trading profits.
Tommy McNally, tax expert and founder of the app TommysTax, explained to Express.co.uk: “The criteria now requires you to state that you have ‘reasonable belief’ that you will experience a ‘significant reduction’ in income due to the coronavirus and you’re asked to wait for ‘reasonable evidence’ of these facts before you apply.
“This means that you need to be able to prove that you’ve had a significant reduction.
“HMRC give a number of examples of eligible causes of that reduction, including a café owner where social distancing measures reduce capacity, a personal trainer who can’t work due to gym closure, contracts being cancelled or supply chain disruption (eg a plasterer not being able to work due to lack of materials).
“Claimants will need to keep evidence of the reduction and the causes of the reduction and you may be asked for this evidence at a later date.
“That evidence will include the business accounts, records (text, e-mails) of contracts being cancelled, records of invoices showing a reduction, records of dates of closures, communication from NHS test and trace saying you have to isolate, school closures to show parental responsibilities.”
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