The applications are now open for the third SEISS grant to support self-employed people affected by coronavirus (COVID-19).

The third grant will be based on 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, and will cover the period from 1 November to 29 January 2021. Self-employed people who are eligible, will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.

Who is eligible

To make a claim for the third grant, you must meet a number of conditions, and make an honest assessment about whether you reasonably believe your trading profits will be significantly reduced due to coronavirus.

As previously, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on 2020-2021 Self Assessment tax returns.

To make a claim for the third grant, you must – as previously:

  • be self-employed or a member of a partnership – you cannot claim the grant if you trade through a limited company or a trust
  • have traded in both the tax years 2018 to 2019 and 2019 to 2020.

For this third SEISS grant you must also now:

  • Either be currently trading but are impacted by reduced business activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus.
  • Declare that you intend to continue to trade, or restart trading, and that you reasonably believe that the impact on your business will cause a significant reduction in your trading profits.
  • Only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not make a business eligible for the third SEISS grant.

When deciding whether the reduction is significant, you will need to consider your wider business circumstances.

HMRC expect claimants to make an honest assessment about whether you reasonably believe your trading profits will be significantly reduced compared to what you would otherwise expect to achieve during this period.

Your business must have been impacted on or after 1 November 2020 and you must keep evidence that shows how your business has been impacted by coronavirus, resulting in reduced activity, capacity or demand, or a temporary inability to trade.

If you require any help then please do not hesitate to contact your client manager at DSM on 01254 823923.

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