WAGE HELP
Fifth self-employment grant: What date can I apply and how much will SEISS boost be?
SELF-EMPLOYED Brits have just one day left to apply for a fifth and final government grant.
The deadline for final Self-Employment Income Support Scheme (SEISS) payment applications is today.
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Self-employed Brits could get compensated for losses they expect to record between May 1 and September 30.
The grant was launched as an equivalent to the furlough scheme to help people who work for themselves.
But who is eligible and when can you claim the fifth grant? We explain what we know so far.
When does the fifth grant come into effect?
HMRC began contacting eligible workers from mid-July to let them know when they could make a claim.
You should have been contacted either by email, text, letter or within the online service.
The earliest available application date was late July - and today is the final day to make a claim.
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You’ll also need to confirm that you meet other eligibility criteria when you apply.
How much will the fifth grant be?
The fifth grant is different from previous payments as it is based on how much your turnover has dropped.
Turnover includes the takings, fees, sales or money earned or received by your business.
To make your claim, you’ll need to have two different turnover figures so HMRC can work out how badly you have been impacted by Covid.
You’ll need to work out your turnover for:
- a 12-month period starting between April 1 2020 and April 6 2020
- either 2019 to 2020 or 2018 to 2019
If your turnover is down by 30% or more you will receive 80% of three months average trading profits, up to a maximum payout of £7,500.
But if turnover has fallen less than 30%, you will get 30% of three months average trading profits to to £2,850.
If you only became self-employed in the 2019/2020 financial year you won't have to provide evidence of a drop in turnover and will get the higher amount.
Previously the grant was worth up to 80% of average profits up to £7,500, without taking into account the drop in turnover.
Who is eligible for the fifth grant?
The criteria is the same as it was for the previous grant - so if you were eligible for that payment you should be in line to receive the fifth one.
There is a stringent set of criteria you must meet to be eligible for the payout.
For example, it is only available to people with trading profits of less than £50,000 but other criteria has changed from grant to grant.
You'll be able to claim the support as long as you meet the following criteria:
- Your trading profits must be no more than £50,000 and at least equal to or more than your non-trading income.
- 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 the 2019 to 2020 tax year (and have submitted your tax return on or before 2 March 2021) and the 2020 to 2021 tax year.
- You must either be currently trading but impacted by reduced demand or have been trading but are temporarily unable to do so due to coronavirus,
- You must also intend to continue to trade and reasonably believe there will be a significant reduction in your trading profits
- You need to keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
How do I apply?
The government has contacted eligible freelancers and self-employed workers about making an application.
Self-employed workers need the following info to claim:
- For Self-assessment unique taxpayer reference (UTR) – if you do not have this
- National insurance number – if you do not have this
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted
- Details on how your turnover has been impacted by Covid.
For a deep dive into the how SEISS works, we've put together a guide with everything you need to known about the system.
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Plus, we meet the entrepreneurs who’ve set up their own businesses after coronavirus left them jobless.
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