Changes to SEISS for Grant 5

Covid Support

 

 

For the fifth instalment of the Self-Employed Income Support Scheme (SEISS) a new Financial Impact Declaration Test will be introduced which determines how much the applicant is entitled to claim. 

 

 

 

SEISS is the main source of government funding for self-employed individuals who have been affected by the Covid-19 pandemic. Four grants have been made so far and the portal for claiming grant five is expected to open by the end July. The deadline for claiming grant five is 30 September 2021.

 

The rules for grant five are mostly the same as grant four with the key exception of a new turnover test. The Financial Impact Declaration Test is not a barrier for claiming grant 5, it will be only used once the applicant is satisfied they meet the conditions for claiming. The test will determine the amount of the grant.

 

The applicant may claim an amount equivalent to their average profit for three months multiplied by 80%. This will be capped at £7,500.

 

Where the turnover test is not met, the grant is equal to average profits for three months multiplied by 30%, capped at £2,850.

 

Not all claimants are required to consider the test, new traders (who traded in 2019-20 for the first time) and those carry on an underwriting business are removed from the test.

 

For the case of the test, turnover means the takings, fees, sales and money earned by the business calculated in accordance with GAAP or the cash basis as appropriate, excluding any coronavirus support payments.

 

The Financial Impact Declaration Test is met when the applicants’ turnover for the pandemic period is at least 30% less than the turnover for the reference period. The pandemic period is the 12-month period beginning on a day falling between 1 April 2020 and 6 April 2020.  The reference period is the tax year 2019-20, however the taxpayer can use 2018-19 if they feel this more accurately represents their turnover where appropriate.

 

For more information please go to https://www.gov.uk/guidance/work-out-your-turnover-so-you-can-claim-the-fifth-seiss-grant