Monday, 30 November 2020

New ‘Significantly Reduced Profits’ Test for Third SEISS Grant

We have been advised by the ICAEW’s Tax Faculty that the eligibility criteria for the third Self-Employment Income Support Scheme (SEISS) Grant has been tightened Further. With the grant claim window opening from today (30th November) claimants will need to consider them carefully before making a claim.
 
Earlier government policy announcements indicated that to qualify for the third SEISS grant, the business needs to not only be adversely affected due to coronavirus but also to:
 
be currently trading but be impacted by reduced demand due to coronavirus; or
        have been trading but be temporarily unable to do so due to coronavirus.

There is now an additional test which states that the taxpayer must:
 
intend to continue to trade; and
reasonably believe there will be a significant reduction in their trading profits due to reduced activity, capacity or demand or inability to trade due to coronavirus.

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