Covid-19 - Self-Employed Income Support Scheme Update on Third Grant

Written 26 November 2020 


SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)

 

 

HMRC has issued guidance on the third SEISS grant and specifically how trading conditions affect eligibility. 

To be able to claim for the third grant, you must either:

·   be currently trading but are impacted by reduced demand due to coronavirus

·  have been trading but are temporarily unable to do so due to coronavirus 

You must also:

·  intend to continue to trade

·  reasonably believe there will be a significant reduction in your trading profits due to reduced demand or your inability to trade 

You must also meet all other eligibility criteria to make a claim. 

HMRC states that it expects SEISS claimants to make an honest assessment about whether they reasonably believe their businesses will have a significant reduction in profits. 

Unfortunately, the guidance on this third grant has toughened the qualifying criteria and significantly narrowed the circumstances in which claims may be possible.  With the first two grants, the criteria were not solely related to financial results, whereas the third claim refers to the expectation of a ‘significant reduction’ in profits.  You should read therefore read the guidance carefully before making a claim, including the examples HMRC provide of scenarios where claims are possible and those where they are not. 

Please talk to us about making a SEISS claim, we can work through your figures and make an accurate estimate of what you should expect. 

See:  https://www.gov.uk/guidance/how-your-trading-conditions-affect-your-eligibility-for-the-self-employment-income-support-scheme 

Further insight can also be found in comments from the ICAEW. 

See:  https://www.icaew.com/insights/tax-news/2020/nov-2020/new-significantly-reduced-profits-test-for-third-seiss-grant 


Take care, stay safe.

#TeamWaltons