News

The deadline of 29 January 2021 for claiming the third SEISS grant is fast approaching.

The Self Employment Income Support Scheme is a UK-wide government scheme currently made up of four taxable grants. It is no longer possible to claim the first or second grant.

If you are self-employed or a member of a partnership and your business has been adversely affected by coronavirus (COVID-19) you may still be eligible to claim the third grant but time is running out for you to do so. You must make your claim on or before 29 January 2021.

The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits. The total grant is capped at £7,500.

To make a claim for the third grant your business must have suffered a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021. You must also reasonably believe that your business will have a significant reduction in profits in the relevant period (for example the 2020/21 tax year) as a result of the reduced activity, capacity or demand suffered.

Unfortunately if you were not eligible for the first and second grant you will not be eligible for the third. Eligibility is assessed based on the information in your Self Assessment tax returns.

If you receive the grant you may still:

·         Continue to work

·         Start a new trade or take on other work including voluntary work and duties as a military reservist.

The grant does not need to be repaid if you’re eligible but will be subject to Income Tax and self-employed National Insurance. You must report any SEISS grants received on your 2020/21 Self Assessment tax return.

Information about a fourth SEISS grant will be provided on 03 March 2021.

If you would like to discuss any of the issues noted above, please contact us on:

01244 625 500 or 01978 364 000

contactus@foremansllp.com

Please be aware that this note is based on the information published as at 26 January 2021 and is intended to provide guidance on how Foremans LLP believe at this juncture the scheme is operating. The information is based on Foremans LLP’s interpretation of the available data. Whilst all due care and attention has been taken in the preparation of these notes no liability can be accepted for any omission or item contained therein.

Foremans LLP

January 2021