The government has announced that the online service for the third SEISS grant is now available. Claims can be made from the date given by HMRC in an email or letter or from within the online service, but must be made by 29 January 2021.
To recap, to be eligible to claim for the third grant you must be self-employed or a member of a partnership, have traded in both tax years 2018/19 and 2019/20, had trading impacted by reduced demand or temporarily suspended due to coronavirus and be able to declare that you intend to continue to trade and that you reasonably believe there will be a significant reduction in your trading profits.
The government further clarifies “reasonable belief” and “significant reduction” as follows:
In order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
Before you make a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.”
The government guidance gives examples and considers how different circumstances can affect your eligibility for the third SEISS grant.
As a reminder, the claim period for the grant is between 1 Nov 2020 and 29 Jan 2021. It will be worth 80% of average monthly trading profits and paid in a single instalment covering three months’ worth of trading profits, capped at £7,500 in total. It is important that you keep records of the amount claimed, grant claim reference and evidence that your business has reduced activity, capacity or demand or was temporarily unable to trade due to coronavirus at the time you make your claim.
Examples of evidence include business accounts, records of cancelled contracts or appointments, fewer invoices, a record of dates where demand or capacity was reduced due to government restrictions, NHS Test and Trace communications, NHS shielding letter, test results or communications from child’s school.