Self-Employment Income Support Scheme 3 (SEISS3)

Introduction

• The third SEISS grant to support self-employed people affected by coronavirus is now open.
• The rules on who is eligible to claim are different to those for the previous SEISS grants.
• However, a 2018/19 SATR showing self-employment income (unless one of the existing exceptions applies) will still need to have been submitted in order to claim.
• Check if you can claim

Eligibility

• The third grant will be based on 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, and will cover the period from 1 November to 29 January 2021.
• Self-employed people who are eligible will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.
• As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must be reported on the 2020/21 SATR, due by 31 January 2022.

Conditions for claim

• You must:
  • be self-employed or a member of a partnership.
  • the grant cannot be claimed if trading through a limited company or a trust.
  • have traded in both the tax years 2018 to 2019 and 2019 to 2020.
  • either be currently trading but are impacted by:
    • reduced business activity, capacity or demand.
    • or have been previously trading but are temporarily unable to do so due to coronavirus.
  • declare intention to continue to trade, or restart trading and reasonably believe that the impact on business will cause a significant reduction in your trading profits.
  • only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus.

Important Details

• When deciding whether the reduction is significant, you will need to consider their wider business circumstances.
• Your business must have been impacted on or after 1 November 2020.
• You must keep evidence that shows how your business has been impacted by coronavirus, resulting in reduced activity, capacity or demand, or a temporary inability to trade.

HMRC Resources

• Register for free live webinars to learn more about SEISS.
• For details of other business support available go to Help and support if your business is affected by coronavirus.
• A fourth grant will also be available from February 2021 to April 2021.