The Self-Employment Income Support Scheme is now open for applications for the third grant, which is worth 80 percent of average monthly trading profits, capped at £7,500 in total. The third grant covers the three-month period from November 2020 until January 2021. Claimants must have been eligible for the first two SEISS grants to claim the third, but there have also been some changes to the eligibility criteria for the latest grant.
How has the SEISS application changed?
The SEISS third grant requires claimants to declare they intend to continue trading.
To claim the third grant self-employed claimants must also declare they reasonably believe there will be a significant reduction in their trading profits.
Tommy McNally, tax expert and founder of the app TommysTax, told Express.co.uk: “The criteria now requires you to state that you have ‘reasonable belief’ that you will experience a ‘significant reduction’ in income due to the coronavirus and you’re asked to wait for ‘reasonable evidence’ of these facts before you apply.
“This means that you need to be able to prove that you’ve had a significant reduction.
“HMRC give a number of examples of eligible causes of that reduction, including a café owner where social distancing measures reduce capacity, a personal trainer who can’t work due to gym closure, contracts being cancelled or supply chain disruption (eg a plasterer not being able to work due to lack of materials).
“Claimants will need to keep evidence of the reduction and the causes of the reduction and you may be asked for this evidence at a later date.
“That evidence will include the business accounts, records (text, e-mails) of contracts being cancelled, records of invoices showing a reduction, records of dates of closures, communication from NHS test and trace saying you have to isolate, school closures to show parental responsibilities.”
Millions of people have been excluded from SEISS, and businesses and individuals have repeatedly called for further support to be given by the Government to those not eligible for the scheme.
Presently those not eligible for SEISS have had to depend on other support, such as Bounce Back Loans which need to be paid back.
On the MoneySavingExpert website, Martin Lewis states: “When the Chancellor’s financial support schemes first came out, they were rightly lauded for protecting millions of people’s jobs and incomes in this unprecedented health and economic catastrophe.
“At the time, I said in one interview I’d give it an A-grade, but what’d really count is how they’d help those who’d fallen through the cracks.
“Yet whether its new starter furlough or self-employed support, freelance PAYE, limited company directors, dental nurses, shielders whose firms won’t furlough and many more – those cracks are now fissures, with up to three million people desperate, without help or support. And so that grade has degraded.”
How to apply for SEISS
The online service for the third SEISS grant is now available on the Government website.
Claims for the SEISS third grant must be made on or before January 29, 2021.
Eligible claimants should have been contacted about a date they can apply for the third grant from.
The Government website explains claimants will need the following to apply:
- Self Assessment Unique Taxpayer Reference (UTR)
- National Insurance number
- Government Gateway user ID and password
- UK bank details including account number, sort code, name on the account and address linked to the account
Claimants should only provide bank account details where a Bacs payment can be accepted.
Claimants may also need to answer questions about their passport, driving licence or information held on their credit file.
Published at Tue, 08 Dec 2020 11:19:00 +0000