The information on this page was last updated on 10th November 2021.
Applications are now open for the third Self-Employment Income Support Scheme (SEISS) grant to support self-employed people affected by COVID-19.
Update
If you received the third SEISS grant, which is subject to Income Tax and self-employed National Insurance contributions, the amount you received should be recorded on your 2020-2021 Self-Assessment tax return, which is – along with the full payment – due at midnight 31st January 2022.
Please note – the CJRS (Coronavirus Job Retention Scheme), Furlough support, and Self-Employment Income Support Grants are no longer available.
The rules on who is eligible to claim are different to those for the previous SEISS grants.
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.
As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must be reported on 2020 to 2021 Self Assessment tax returns, due by 31 January 2022.
What you should do to get ready
- Check whether you are eligible to claim, as the eligibility rules are different to the previous SEISS grants, as detailed in the below “Who is Eligible” section.
- Be aware that, like SEISS grants 1 and 2, tax agents cannot claim this grant on behalf of their clients; they must do so themselves. If an agent tries to make a claim on a client’s behalf, it will trigger a fraud alert that will delay the payment.
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 their 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 2018-19 and 2019-20.
For this third SEISS grant customers 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.
As referred to above, HMRC expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period.
To make a claim for the third 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.
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.
There are some examples that can help you decide if there is a significant reduction that would result in you being eligible for the grant.
Find out more information on how your circumstances affect your eligibility.
Making the claim
To make the claim you will need the following information to hand:
- Tax Reference
- National Insurance Number
- Government Gateway user ID and password
- Account number and sort code for the bank account you want the grant paid into
If you have any further queries or need any further information on the third SEISS grant, please get in touch.
