There are less than ten days left to apply for the fifth and final SEISS (Self-Employed Income Support Scheme) grant – the last date to apply is 30 September 2021.
So far, the UK Government has paid out £25.2billion in financial support to 2.9million self-employed individuals whose business has been affected by coronavirus through SEISS. Earlier this month, HMRC said that 3.4m self-employed individuals were identified as potentially eligible for the fourth SEISS grant - which closed for applications in June - but that only 2m (58%) of that figure have actually made a claim.
So if you think you are eligible and haven’t claimed yet, get your skates on!
More details below, including how to report your SEISS grant on your tax return.
How much is the final SEISS grant?
The fifth SEISS grant is designed to cover the period of May 1 to September 30. Although the period is five months, how much you get is based on your average trading profits over three months and how much your business has been affected by Covid.
It is slightly different to the previous four SEISS grants as this one has two levels.
If your turnover (excluding any COVID support) is down by more than 30%, you'll be able to claim the full grant worth 80% of three months’ average trading profits, capped at £7,500.
But if your turnover has fallen by less than 30%, you'll be able to claim a grant worth 30% of three months' average trading profits, capped at £2,850.
|How much your turnover is down by?
|Level of the grant
|Maximum grant amount
|More than 30%
|80% of 3 months’ average trading profits
|Less than 30%
|30% of 3 months’ average trading profits
Am I eligible?
Apart from the new turnover test, other eligibility for the fifth SEISS grant is the same as it was for the fourth grant - so if you claimed the previous support, you'll be able to claim again.
In most cases, you will need to have:
- Filed a 2019/20 tax return by 2 March 2021.
- Traded in both the 2019/20 and 2020/21 tax years - and continue to trade beyond this
- Reasonably believe you have suffered/will suffer a significant reduction in trading profits due to the impact of COVID-19 for the period 1st May 2021 to 30th September 2021.
- Earned at least 50% of your total income from self-employment
- Recorded average trading profits of £50,000 a year or less
How do I apply?
In most cases HMRC will have already invited you to claim. However, if you have not received an invite and you think that you are eligible you can apply for the fifth SEISS grant on the HMRC website. You will need your:
- Self-assessment Unique Taxpayer Reference (UTR)
- National Insurance number
- Government Gateway user ID and password
- UK bank details
You'll also need two different turnover figures (so HMRC can work out how badly your business has been affected) for:
- 2019/20 (you can find this on your tax return)
- 2020/21 (if you’ve already done your tax return it will be there, or you’ll need to work it out from your records)
Are SEISS grants taxable? And how do I note this on my self-assessment form?
The grants are subject to income tax and self-employed National Insurance contributions (NIC) and taxable when received (irrespective of your accounting periods). This may lead to the grants received being taxed in a different period to when your business suffered reduced income due to the pandemic.
- Grants 1-3 are taxable in 2020/21
- Grants 4-5 are taxable in 2021/22
See https://untied.io/covid on how to report SEISS and other COVID grants in untied and on your tax return.
It is important to note that the way that HMRC require SEISS to be reported has changed since tax returns started to be submitted, and there is now a box they require to be completed for this purpose (since the change, untied automatically populates it). If you filed your return early and HMRC records show that you have received grants and this box is blank, HMRC may raise an assessment. Contact untied via email@example.com for help amending your return to fix this.