Third Self Employment Income Support Scheme (SEISS) Grant
Following the Government’s announcement of the extension to the Self-Employed Income Support Scheme (SEISS) this month, detailed guidance has now been released regarding the third grant.
If you were eligible for either the first or second grant, you may be eligible for the third grant. The third taxable grant will be the same amount as the first grant and is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and is capped at £7,500. The online service for the third grant will be available from 30 November 2020 and you must make your claim by 29 January 2021.
The eligibility requirements has now changed and you must either:
- Be currently trading but are impacted by reduced demand due to coronavirus; or
- Have been trading but are temporarily unable to do so due to coronavirus.
You must declare that you intend to continue to trade and you reasonably believe there will be a significant reduction in your trading profits. To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021.
- Reasonable belief – In order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected
- Significant reduction – Before you make a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in. You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.
HMRC have released some examples of businesses who may still be affected. Please click here for the examples.