Applications for third SEISS grant now open
The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
To make a claim for the grant, your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which you ‘reasonably believe’ will have a ‘significant reduction’ in your profits.
The grant won’t need to be repaid, but it will be subject to income tax and self-employed National Insurance, and must be reported on your 2020-21 self-assessment tax return.
You can make a claim for the third grant even if you didn’t make a claim for the first or second SEISS grant.
Am I eligible?
To be eligible for the third grant you must be a self-employed individual 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 2018-19 and 2019-20. If you claimed Maternity Allowance this will not affect your eligibility for the grant.
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
In order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021.
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC says you should wait until you have a ‘reasonable belief’ that your trading profits are going to be significantly reduced before you make your claim.