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FIFTH SEISS GRANT – update 8.7.2021
FIFTH SEISS GRANT – update 8.7.2021
If you’re eligible based on your tax returns, HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.
The online service to claim the fifth grant will be available from late July 2021.
You’ll need to confirm that you meet other eligibility criteria when you make your claim.
You must make your claim on or before 30 September 2021.
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.
Who can claim
Find out if you’re able to claim for a SEISS grant by checking that you meet all criteria in stages 1, 2 and 3.
Stage 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:
- 2019 to 2020
- 2020 to 2021
You cannot claim the grant if you trade through a limited company or a trust.
Stage 2: Tax returns and trading profits
You must have:
- submitted your 2019 to 2020 tax return on or before 2 March 2021
- trading profits of no more than £50,000
- trading profits at least equal to your non-trading income
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, we’ll look back at previous years.
HMRC will contact you in mid-July if you’re eligible for the grant based on your tax returns.
Find out more about how HMRC works out trading profits and non-trading income.
Stage 3: Deciding if you can claim
When you make your claim you must tell us that you:
- intend to keep trading in 2021 to 2022
- reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021
If you think your business has been impacted by COVID-19, find out how to decide if you can make a claim.
How different circumstances affect the scheme
There are some circumstances that you should take into account, such as:
- your return is late, amended or under enquiry
- you’re a member of a partnership
- you had a new child
- you have loans covered by the loan charge provisions
- you claim averaging relief
- you’re a military reservist
- you’re non-resident or chose the remittance basis
If you claim Maternity Allowance this will not affect your eligibility for the grant.
Find out more information on how your circumstances affect your eligibility.
Get ready to claim
The fifth grant is different from previous grants. In most cases, when making your claim you’ll need to tell us about your business turnover so we can work out your grant amount.
Turnover includes the takings, fees, sales or money earned or received by your business.
To make your claim, you’ll need to have 2 different turnover figures. You’ll need to work out your turnover for:
- a 12-month period starting between 1 April 2020 and 6 April 2020
- either 2019 to 2020 or 2018 to 2019
We’ll compare these figures to work out how much you’ll get.
Find out how to work out your turnover so you can claim the grant.
When you do not need turnover figures to claim
We 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:
- 2018 to 2019
- 2017 to 2018
- 2016 to 2017
How much you’ll get
If you need to tell us about your turnover
There are 2 levels of grant. HMRC will work out your grant amount based on how much your turnover is down by after we’ve compared your 2 turnover figures.
| If your turnover is down by | You’ll get | Maximum grant amount |
| 30% or more | 80% of 3 months’ average trading profits | £7,500 |
| less than 30% | 30% of 3 months’ average trading profits | £2,850 |
Example
This is an example of how we’ll work out your grant if your average trading profits were £42,000 over the last 4 tax years.
- Start with your average trading profit (£42,000).
- Divide by 12 = £3,500.
- Multiply by 3 = £10,500.
If you’re eligible for the higher grant:
- Work out 80% of £10,500 = £8,400.
- You’ll get the maximum grant of £7,500.
If you’re eligible for the lower grant:
- Work out 30% of £10,500 = £3,150.
- You’ll get the maximum grant of £2,850.
If you do not need turnover figures to claim
You’ll get 80% of 3 months’ average trading profits. The maximum grant amount is £7,500.
Find out more information on how HMRC work out your trading profits.
How to make a claim
The online service for the fifth grant will be available from late July 2021.
HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.
You can check a list of genuine HMRC contacts if you receive any suspicious texts, calls or emails claiming to be from HMRC as this may be a scam.
How the grant is treated
The grant is subject to Income Tax and self-employed National Insurance Contributions. It must be reported on your 2021 to 2022 Self Assessment tax return.
The grant also counts towards your annual allowance for pension contributions. SEISS grants are not counted as ‘access to public funds’ and you can claim the grant on all categories of work visa.
Other help you can get
Get other financial support
You may be able to claim Universal Credit, but even if the claim is not approved it will affect any tax credits you claim and may affect other benefits. So you should:
- check how tax credits and other benefits affect each other
- find out what to do if you’re already getting benefits
If you make a claim for Universal Credit the grant may affect the amount you get, but will not affect Universal Credit claims for earlier periods.
The government is also providing wider support for the self-employed. Find out what support you can get if you’re affected by COVID-19.
If you have other employment as a director or employee paid through PAYE your employer may be able to get support using the Coronavirus Job Retention Scheme.
You can watch videos and register for free webinars to learn more about the support available to help you deal with the economic impacts of COVID-19.
Use HMRC’s digital assistant to find more information about the COVID-19 support schemes.
