SEISS Grant 5 Applications Now Open
What Is The SEISS Grant?
The SEISS Grant 5 applications are now open! The Self Employed Income Support Scheme (SEISS) is a temporary support initiative that was implemented by the UK government. The goal of the scheme is to help self-employed individuals who have been negatively impacted by the Coronavirus. Since the grant is not considered a loan, you will need to pay income tax and National Insurance on these amounts. However, you will not need to pay back the grant amount. The applications for the 5th grant opened on 29 July 2021. Previously, the amounts that have been paid out have varied based on the grant criteria.
This time around, it covers 80% of average profits if your turnover has fallen by more than 30 percent (those who haven’t been as affected can get a 30 percent grant, capped at £2,850). Applications for the grant close on 30 September 2021. As things stand with most restrictions being lifted at the moment, the 5th grant is set to be the last.
Who Can Claim the SEISS Grant 5?
Under the SEISS eligibility, you need to either be currently trading but suffering a reduced demand due to Covid 19, or temporarily unable to trade due to Covid 19. Additional SEISS eligibility means that you have to have traded in the 2019-20 and 2020-21 tax years. This also includes having submitted your 2019-2020 tax return by 31 March 2021. Furthermore, you will need to declare that you intend to continue to trade in 2021 and 2022, with a “reasonable belief” that you will suffer a significant reduction in profits from 1 May - 30 September 2021.
Lastly, you will need to prove that you have taken in no more than £50,000 trading profits and at least equal to your non-trading income. It is also important to note that if you are not eligible according to your 2019-20 return, HMRC will look at tax years 2016-17, 2017-18, 2018-19, and 2019-20.
A Look at The Claims Process
The claims portal opened on the 29th of July 2021 and will close on 30 September 2021. According to Gov.uk, HMRC will contact you if you are eligible in order to give you a date that you can make your claim from. However, if you believe that you are eligible, you can check via the guidance webpage before they reach out to you. This page also provides information about additional financial support you could potentially receive as a business affected by Covid 19.
In preparation for the claims process, there are a few things that we recommend keeping at hand. These include self assessment UTR, National Insurance number, Government Gateway user ID and password, bank account number and sort code. As a side note, your bank should be able to accept BACS payments. Additionally, you should have your pandemic and reference turnover figures ready. It is important to note that with the 5th grant, you might need to provide 2 turnover figures.
Wrapping Up the SEISS Claims
You will know if you are going to be getting your grants as soon as you apply. Usually, payments are made within 6 working days of the application. Furthermore, SEISS grants are different from the furlough scheme in the sense that you may still continue working even if you apply for the grant. Also, you will need to report your grant on your self-assessment tax return so it is important to keep all documentation you receive.
At Spartan Accounting Group, our small business accounting experts can help you with the entire process of claiming the 5th SEISS grant. Our expertise and knowledge will ensure that the process is handled efficiently. Whether your business is a Limited Liability Partnerships, sole traders or partnerships, limited companies or even charity, we have the expert accounting services for you. Get in touch today to schedule a free 30-minute business consultation with Spartan Accounting Group.
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