The online claims portal for the third self-employed income support scheme (SEISS.3) grant opened on 30 November.
If you qualify for the grant you should receive a lump sum payment covering the three months from 1 November 2020. You have until 29 January 2021 to submit your claim.
The grant is calculated as 80% of your average trading profits as reported on your tax returns for the years 2016-17 to 2018-19, capped at £2,500 per month. It is treated as taxable income of your business and must be reported on your 2020-21 tax return.
On the application you will be asked to confirm that your business is currently trading; or has been trading and is temporarily closed due to Covid-19 and that you intend to continue trading when the restrictions are lifted. You will also need to declare that your business has been impacted by reduced demand between 1 November 2020 and 31 January 2021, which will cause a significant reduction in trading profits for the accounting year 2020-21.
This means that to qualify for the SEISS.3 grant your sales income should be markedly reduced, leading to a drop in profits. This reduction could be due to a range of factors including fewer customers or contracts or problems with supplies. A reduction in sales due to sickness of the business owners or workers could also qualify.
If you have any questions concerning the above, or any other tax matters, please do get in contact with us.