Monday, 25 January 2021

Deadline for claiming third SEISS grant - 29th January 2021

A reminder that claims for the third Self Employment Income Support Scheme (SEISS) grant must be submitted to HMRC by midnight on Friday 29th January 2021.

It is not usually possible to make a late claim under the scheme.

When deciding whether you meet the “significant reduction in trading profits” test for the third SEISS grant, you do not need to take into account the first and second SEISS grants, nor any other COVID-19 government support payments received.

If the 1st November 2020 to 31st January 2021 eligibility period for the third grant straddles two basis periods, it is sufficient to be able to show a significant reduction in trading profits for one of the basis periods. You do not need to show a significant reduction in both basis periods to be eligible for the third grant.

When assessing whether there has been a significant reduction in trading profits, the comparison period is not specified in HMRC’s guidance. You can use the previous year or an average of for example the last three years trading profits, but a reduction against an earlier forecast for the relevant basis period would also be valid.

Where you have more than one trade it is sufficient to show that one of the trades has suffered reduced activity, capacity, or demand, or has been temporarily unable to operate since 1st November 2020, and that you reasonably believe that this will cause a significant reduction in the profits compared with what you would otherwise have expected for that trade. You do not have to consider the two trades together.

In some cases, the reduction in activity, capacity, or demand may be only partly due to COVID-19 restrictions. For example, you might decide to take on a part-time job or college course alongside your reduced self-employment. So long as least some of the reduced activity, capacity or demand is due to COVID-19 restrictions you would be eligible for the third grant.

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