Published On: Tue, Dec 1st, 2020

SEISS date: Are applications for third self-employed grant open? | Personal Finance | Finance

The Self-Employment Income Support Scheme has been subject to many changes since it was brought in back in March. The amount of the third SEISS grant has changed repeatedly, and due to the national lockdown it was decided the third grant will be worth 80 percent of average monthly trading profits. The third grant will cover November 2020 to January 2021 and will be capped at £7,500 in total for the three-month period.

To claim the SEISS third grant, claimants must be self-employed individuals or part of a partnership.

To be eligible for SEISS, self-employed people must have traded in both the 2018 to 2019 and the 2019 to 2020 tax years to be eligible, and for 2018 to 2019 a Self Assessment tax return must have been submitted on or before April 23, 2020 for that year.

Claimants must be either currently actively trading and impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to COVID-19.

To apply, self-employed people must also declare their intention to continue trading, and that they reasonably believe there will be a significant reduction in their trading profits.

READ MORE: SEISS third grant applications open today– are you ready?

The Government website states claimants “must keep evidence” demonstrating how their business has been impacted by COVID-19 “resulting in less business activity than otherwise expected”.

With regards to the criteria of a “significant reduction” in trading profits, the Government website explains: “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.

“HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

“You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced before you make your claim.”

For many people, SEISS has provided much needed financial support during a long period of economic hardship.

By October 31, HMRC had paid out £5.9billion to some 2.3 million claimants eligible for the scheme’s second grant.

However since the scheme was introduced earlier this year, SEISS has also faced criticism for excluding a number of self-employed people.

According to the latest HMRC statistics on SEISS published in November, some five million people declared self-employment income for the 2018 to 2019 tax year.

More than 3.4 million people have been identified as eligible for SEISS by HMRC, but as many self-employed people are excluded from the scheme, some businesses have had to borrow to stay afloat from initiatives such as the Government’s Bounce Back Loan Scheme.

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HMRC are urging people to make their claims from the date given to them by HMRC in either an email, letter or within the service.

HMRC are also encouraging people to contact them about potential scams if they receive any suspicious calls, texts or emails claiming to be from HMRC.

A date for applications for the fourth grant has not yet been set by HMRC, but details are expected in “due course” according to the Government website.

Currently, it is not known how much the scheme’s fourth grant will be worth.

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