Budget 2021: Two further SEISS grants available
Self-employed traders will be able claim a fourth SEISS grant from late April and a fifth SEISS grant in late July 2021, but extra conditions will be attached to the fifth grant.
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@ Rebecca,
I must respectfully disagree your comment that:-
"The fifth SEISS grant will be payable for the three months to 31 July 2021".
I have received (yesterday) an HMRC email which includes:-
"The UK Government has also announced that there will be a fifth and final SEISS grant covering May to SEPTEMBER (my emphasis)", and
"Your clients will be able to CLAIM (my emphasis) the fifth grant from late JULY (my emphasis) if they are eligible".
I am assuming of course that the HMRC email is not incorrect.
Basil.
@fawltybasil2575, @Rebecca. I think you are both right and dear Rishi is pulling a fast one. He intends the 5th SEISS grant to cover May to September but is only paying out 3 months worth or avge earnings not 5. Made the whole thing so confusing, with different rates depending on how much earnings have dropped by and delaying application dates, that he probably hoped no one would notice.
Dear Rebecca,
Thank you for that info.
Could you please indicate however (if known at this point it time) which period(s) will be considered in the "Reduction in Turnover" calculations.
I think HMRC have not yet got a clue
What happens to council grants, properly declared ye 20 but to cover ye 21 expenditure?
Is that turnover?
Who is going to calculate turnover?
HMRC cannot, they will have ye20 but not 21(tax returns)
But then, some returns will be showing accounts dates ye April 2019, some ye March 20 (tax returns)
Does HMRC think the trader can figure this all on their own without massive unintentional error
A subcontractor looking at bank statements to decide his turnover?
The detail will be impossible to comply with
Q1. How will this work for partnerships? SEISS is claimable by individual partners based on their taxable profit. But turnover is the partnership as a whole.
Q2. To date SEISS has been calculated by HMRC using data it already holds from historic tax returns. What data will HMRC use for turnover? It can't use VAT returns because many <£85k turnover claimants aren't VAT registered. Will HMRC ask claimants to manually declare their turnover? If so, how will HMRC check it because the annual Tax Return will be the annual turnover and won't give an indication if the turnover for part of the year has changed, only the year as a whole.
Proposed revisions
Legislation will be introduced in Finance Bill 2021 to tax a payment from SEISS as income for the tax year in which it is received.
Thanks for the article.
I would appreciate some clarification.
Within your article it states that the Grant 4 is calculated as '' The average profit calculation will include profits from all four tax years from 2016/17 to 2019/20.''
I was referring to the Gov.uk website, and although not so clear, it seems that they will use ONLY the 2019/2020 returns for qualifying self employed (that includes those who were eligible for previous grants).. Can you confirm?
Re SEISS 5
(1) The GOV.UK guidance states that the "reduction" at issue is NOT for the claim PERIOD (1 May 2021 to 30 September 2021) but for the year to 5 April 2021: in that respect the calculation basis is of course entirely different from SEISS 1, 2, 3 and 4 (for those four claims, the basis period is the same as the claim period).
(2) Whilst further information will follow in due course, one must assume that the "reduction" is simply the excess of:-
(i) the (of necessity estimated) turnover which would have realistically been
achieved if Covid-19 had not struck, over
(ii) the actual turnover.
Basil.
Hi Rebecca,
Wondered if you have any idea what the new trader is expected/could ask to do this? 'We will provide you the opportunity to confirm that the caller is from HMRC'? obviously people commenting have alluded to the fraudster opportunity here - but what would info/facts would you suggest we prime our clients to have 'on their person' for this 'golden ticket' opportunity?? UTR number? or perhaps their declared profit or turnover?? what would NOT be available to a scammer? would welcome your feedback please.