Full details of the fifth Self-employment Income Support Scheme (SEISS) grant, including a new turnover test which determines the level of the grant, have now been published by HMRC.
The key change from the previous SEISS grant is that the level of the grant depends on whether turnover has dropped by more or less than 30 percent.
The fifth grant is 80 percent of three months’ average trading profits, capped at 7,500 pounds for those whose turnover has reduced by 30 percent or more. Those with a turnover reduction of less than 30 percent will receive a grant based on 30 percent of three months’ average trading profits, capped at 2,850 pounds.
To be eligible for the grant, an individual must be self-employed or a member of a partnership. They must have traded in the tax year 2019/2020 and submitted their tax return on or before 2 March 2021, and also have traded in the tax year 2020/21.
They must be currently trading but be impacted by reduced demand due to coronavirus (COVID-19), or have been trading but are temporarily unable to do so due to COVID-19.
Claimants will need to provide two turnover figures during the claims process: one from the pandemic period and an earlier reference period.
