Fifth Self-Employment Income Support Scheme (SEISS) Grant
The Fifth SEISS grant differs from the previous grants given in that the amount of the grant will be calculated by looking at the reduction in turnover in the year 2020-21 in comparison to turnover before the pandemic.
If HMRC believe you are eligible to claim the grant, they will contact you from mid-July to provide you with a personal claim date.
Eligible customers can apply anytime from their personal claim date until 30 September 2021.
You should only claim the fifth grant if you think that your business profit will be impacted by coronavirus (COVID-19) between 1 May 2021 and 30 September 2021.
1. Your trading status and when you must have traded
You must be a self-employed individual or a member of a partnership. You must also have traded in both tax years:
You cannot claim the grant if you trade through a limited company or a trust.
2. Tax returns and trading profits
You must have:
Non-trading income is any money that you make outside of your business. For example, if you also have a part-time job or pension.
If you’re not eligible based on the trading profits in your 2019 to 2020 return, HMRC will look back at previous years.
3. Deciding if you can claim
When you make your claim, you must tell HMRC that you:
How will the claim be calculated?
The amount of the grant will be calculated by looking at how much your turnover has reduced in the year 2020-21 in comparison to your turnover pre-pandemic.
Therefore, if you choose to make a claim, you will need your turnover figures for:
Turnover includes the takings, fees, sales or money earned or received by your business.
HMRC will not ask you for any turnover figures if you started trading in 2019 to 2020 and did not trade in the following tax years:
How to find your 2019-20 (or 2018-19) turnover
In most cases, your turnover figure will be on your tax return. Your turnover figure will be in a different box, depending on which tax return and supplementary pages you submitted.
If any of the below apply to you, you will need to take extra steps to tell HMRC your turnover before the pandemic:
For support when calculating turnover, you can check the full guidance by searching ‘SEISS’ on GOV.UK.
How to work out your 2020-21 turnover
You need to work out your turnover for a 12-month period, which must start between 1 April 2020 and 6 April 2020. Your figure should be as accurate as possible or an honest estimate.
How you calculate your turnover will depend on the records you keep. You may need to:
Once you’ve found your figures, you should add them all together to work out your turnover for April 2020 to April 2021.
Coronavirus support payments you received should not be included in your turnover. This includes, previous SEISS grants; Eat Out to Help Out payments; local authority or devolved administration grants.
If any of the below apply to you, it may change the way you calculate your April 2020 to April 2021 turnover:
How much will the grant be
1. If you need to tell HMRC about your turnover
HMRC will work out your grant amount based on how much your turnover is down by after they have compared your 2 turnover figures:
2. If you do not need turnover figures to claim
You will receive 80% of 3 months’ average trading profits. The maximum grant amount is £7,500.
Self Assessment 2020-21
You do not need to submit your 2020-21 Self Assessment tax return at this time, even though HMRC are asking you for your 2020-21 turnover.
The deadline for the 2020-21 Self Assessment tax return is still 31 January 2022.
Reporting SEISS grants on your Self Assessment tax returns
SEISS grants are taxable. You need to report any grants you receive on the correct year’s return using the correct box. Grants should not be included in your turnover.
The first, second and third grants must be reported on your tax return for the year in which they were received – in the majority of cases, this will be the 2020-21 tax return to be submitted by 31 January 2022. If, exceptionally, you received your first, second or third SEISS grant payment on or after 6 April 2021, you will need to report this instead on your 2021-22 tax return.
The fourth and fifth grants should be included in your 2021-22 Self Assessment tax returns, which you cannot submit yet.