SEISS eligibility checker: How to check if you are eligible for SEISS
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The Self Employment Income Support Scheme (SEISS) is a government grant given to those self-employed who are impacted by the coronavirus pandemic. There have been three grants so far, and a fourth is due to be issued to cover the period of February 2021 to April 2021.
Those who are eligible can apply for the third SEISS grant up to the 29th January – in just a few days time.
The third taxable grant is worth 80 percent of your average monthly trading profits, paid out in a single instalment.
The grant covers three months’ worth of profits and is capped at £7,500 in total.
But just who is eligible for SEISS? Here is how to check.
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To be eligible for the third grant you must be self-employed or a member of a partnership.
You cannot claim the grant if you trade through a limited company or a trust.
You must have traded in both tax years:
- 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- 2019 to 2020
You must either:
- be currently trading but are impacted by reduced demand due to coronavirus
- have been trading but are temporarily unable to do so due to coronavirus
You must also declare that:
- you intend to continue to trade
- you reasonably believe there will be a significant reduction in your trading profits
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A major element of SEISS is ‘reasonable belief’ which those claiming must believe they will suffer due to the pandemic.
Reasonable belief of suffering could be due to business activity, capacity, demand or inability to trade due to coronavirus between November 1, 2020 to January 29, 2021.
Claimants must keep evidence which shows how their business has been impacted by coronavirus resulting in less business activity than otherwise expected.
Claimants must also prove they will have a significant reduction in trading profits.
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.
The SEISS grant does not need to be repaid if claimants are eligible, but will be subject to Income Tax and self-employed National Insurance.
Any SEISS grants must be reported on your 2020 to 2021 Self Assessment tax return.
If you’re eligible, you’ll receive a grant worth of 80% paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
- Start with your average trading profit (£42,000).
- Divide by 12 = £3,500.
- Multiply by 3 = £10,500.
- Work out 80 percent of £10,500 = £8,400. You will only receive £7,500 due to the cap.
Read more about SEISS and submit a claim on the Government’s website here.
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