On Monday, November 30, the third of four Self-Employment Income Support Scheme (SEISS) opened for applications.

It covers the period November 1 to January 31 and the amount you can claim is 80 per cent of average monthly trading profits over three months, capped at £7,500.

However, this time round the application criteria are stricter. 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.

The third grant will also be subject to Income Tax and self-employed National Insurance and must also be reported on 2020 to 2021 Self Assessment tax returns. 
As before, to make a claim 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;
  • Have traded in the tax years 2018 to 2019 and 2019 to 2020.
  • For the third SEISS grant you must also: 
  • Either be currently trading but are impacted by reduced 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, and that you reasonably believe that the impact on your business will cause a significant reduction in 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 count for this purpose.

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

Claimants are expected 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. 

The business must have been impacted on or after 1 November 2020 and you must keep evidence to show the impact and reduction in your business activity across the qualifying period. If you wish to claim this final grant you must do so on or before January 29, 2021.

For accounting help and advice, contact Ms Robinson on 07392-085826 or email helen.robinson@armstrongwatson.co.uk