Martin Lewis, Money Saving Expert, regularly provides help on money related queries to people right across the country. Helping throughout the pandemic, Martin has issued guidance on support schemes such as SEISS, and his latest alert has proven no different. Taking to social media, Martin spoke directly to the self-employed who may be thinking of claiming support.
Britons can expect to be contacted with their personal claim date from mid-July onwards for further details.
In recent weeks, Martin also shared an update on the fifth grant which was made available through the Government’s website.
He confirmed the “brief info” put out by HMRC when it comes to this form of support.
Martin observed that the eligibility criteria, perhaps the most important matter for self-employed people to consider first, appears to be the same as that offered by the fourth grant.
To be eligible to receive SEISS grant five, a person must be self-employed or a member of a partnership.
They must have also traded in the following tax years in order to claim:
- 2019 to 2020, having submitted a tax return on or before March 2, 2021
- 2020 to 2021
A person must either be currently trading but impacted by reduced demand due to COVID-19, or have been trading in the past but are temporarily unable to do so because of the pandemic.
In working out a person’s eligibility, HMRC will look at a 2019 to 2020 Self Assessment tax return.
Trading profits must be no more than £50,000, and at least equal to someone’s non-trading income.
If a person is not eligible based on their 2019 to 2020 tax return, HMRC will then look at previous years.
To claim, a person must declare that they intend to continue to trade.
They must also state they reasonably believe there will be a significant reduction in their trading profits due to COVID-19 from May to September 2021.
Individuals must also keep evidence to this effect to demonstrate how their business has been impacted by less activity, capacity, demand or an inability to trade.
One major change with the fifth grant compared to earlier forms of self-employed support relates to how much a person can receive.
This will be determined by how much an individual’s turnover reduced in the year April 2020 to April 2021.
For a turnover reduction of 30 percent or more, people can get 80 percent of three months’ average trading profits up to £7,500.
For a turnover reduction of less than 30 percent, however, individuals will get 30 percent of three months’ average trading profits up to £2,850.
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