SEISS update: HMRC changes fifth grant eligibility rules – all you need to know
HMRC has modified its SEISS guidance ahead of the release of the fifth tranche of grants in late July. Claimants have been provided specific instructions on how to calculate their turnover.
Millions of self-employed professionals have benefited from SEISS in the last year, and starting in late July, freelancers will be able to apply for a fifth grant if they are still affected by coronavirus. HMRC has changed its turnover reporting standards ahead of time.
“You must calculate your turnover for a 12-month period beginning on any date between April 1 and June 6, 2020,” HMRC explained.
“You have the option of using one of the following periods:
“You should double-check your calculation. After you submit your tax return for this period, HMRC will be able to verify your figures.
“Your total turnover must encompass all of your businesses.”
HMRC went into detail on where these figures can be found:
A claimant must meet all criterion stages, which are divided into three portions, to be eligible for a fifth SEISS grant.
Claimants must be either self-employed or part of a partnership.
They must also have traded between the tax years 2019 and 2021.
If the claimants traded through a limited business or trust, they will not be eligible for a grant.
Claimants must have filed their 2019-2020 tax return by March 2, 2021, have no more than £50,000 in trading gains, and their trading profits must be at least equivalent to their non-trading income.
Non-trading income is any money earned outside of the business, such as if the claimant works part-time or receives a pension.
HMRC will go back in past years if a claimant is not eligible based on trading profits in their 2019 to 2020 form.
If eligible claimants haven’t previously been contacted by HMRC, they should be contacted soon.
Claimants must tell HMRC that they plan to continue trading in 2021-2022 and that they “reasonably expect there will be a significant reduction in their trade earnings due to the impact of coronavirus between May 1, 2021 and September 30, 2021” when filing a claim.
The fifth grant, according to HMRC, will be different from prior grants.
“In most situations, you’ll need to tell us about your business when making your claim.”Brinkwire Summary News,” it said.