SEISS part 3 - 30th November
Updated: Dec 30, 2020
On the 30th of November, the 3rd part of the SEISS grant opened and will again be staggered over a few days for everyone to make their claims.
This is how the SEISS is worked out.
You will get the average trading profits over the last 3 tax years. This is the NET PROFIT or in other words, the profit after your expenses. If you have bought an expensive capital asset, like a new Van or London Black Cab, you may find your trading profits were low due to using Capital Allowances (Depreciation). This will impact your grant negatively, as your tax bill in that year would have been decreased too.
Once again, to be eligible you must make over 50% of your income from self-employment. Many people who work part-time with pensions have property income, or work PAYE alongside Self-Employment, have found they do not qualify because they earn more from those other income streams. An average of 17-18-19 years will be used to judge how much you will receive. You needed to be up to date with your tax returns by the 23rd of April 2020, so if you have any outstanding returns now, you will not qualify.
If you’re eligible, you will receive a grant worth 80% of net profit paid out in a single instalment covering 3 months’ and capped at £7,500 in total. All the money received will be included in earnings for next year, so it will be taxable.
Start with your average trading profit (£21,000).
Divide by 12 = £1,750.
Multiply by 3 = £5,250.
Work out 80% of £5,250 = £4,200.
If you make a claim for Universal Credit the grant may affect the amount you get, but will not affect Universal Credit claims for earlier periods.
PLEASE MAKE YOUR CLAIM BEFORE THE 29TH OF JAN 2021.
You must either:
be currently trading but are impacted by reduced demand due to coronavirus
have been trading but are temporarily unable to do so due to coronavirus
You must also declare that:
you intend to continue to trade
you reasonably believe there will be a significant reduction in your trading profits
Do not claim therefore if your intention is to leave self-employment. It is not yet clear what happens if you leave your current self-employment to start another self-employment. So don't claim and then fall into a trap where you may need to pay it back.
You will need your Unique Taxpayer Reference and National Insurance number first, then you may then be asked to sign in to your Government Gateway or use your passport to verify you are who you say you are.
If you are a client of Shortandsons.co.uk we will have your UTR and NI number, but we do not hold any information on your Government Gateway account.
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