The Self-Employment Income Support Scheme (SEISS) has offered four taxable grants to eligible claimants so far. In early July, the Government’s guidance for SEISS grant five was updated to highlight key dates claimants should be aware of for the upcoming grant. So read on for more information on SEISS eligibility, applications and payments.
How will turnover affect SEISS grant five?
Turnover will have a significant impact on how much claimants get from SEISS grant five.
There are two levels of SEISS grant and if someone’s turnover has decreased by less than 30 percent, they will be eligible for a grant worth 30 percent of three months’ average trading profits, capped at £2,850.
If a claimant’s turnover has decreased by 30 percent or above, the grant will be worth 80 percent of three months’ average trading profits, capped at £7,500.
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A claimant must be a self-employed individual or a member of a partnership to meet the trading status requirements.
Claimants also need to have traded in the 2019/2020 and 2020/2021 tax years to get the grant.
The second stage of the criteria involves tax returns and trading profits.
For SEISS grant five, claimants need to have submitted their 2019/2020 tax return on or before March 2, 2021, to qualify.
The claimant must also have trading profits of no more than £50,000 and their trading profits must be at least equal to non-trading income.
Stage three involves making a decision on whether a claim for SEISS should be made.
When someone claims SEISS, they must tell inform HMRC that they intend to keep trading from 2021 to 2022.
Claimants must also declare they “reasonably believe” there will be a “significant reduction” in trading profits due to the impact of COVID-19 between May 1, 2021, and September 30, 2021.
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