13 Jul SEISS Grant 5 -The Details Are Finally Here…
After a lot of speculation, the government have finally announced the details of the fifth (and hopefully last) SEISS grant with the England less than a week away from ‘Freedom Day.’ Whilst the SEISS Grants have been a lifeline, many hope that this will be the last grant necessary as we move towards a world without Covid restrictions.
So, what are the NEED TO KNOW details with this grant?
It Is Very Similar to Grant 4
HMRC announced that if you were not eligible for the fourth grant, you wont be for the fifth either. To be eligible you need to:
- Have submitted your 2019/20 self-assessment tax return by 2nd March 2021;
- Must currently be trading and impacted by reduced demand due to the Coronavirus Pandemic or has been trading but is temporarily unable to due to the Coronavirus Restrictions;
- Traded in the tax years of 2019/20 and 2020/21;
- Intends to continue trading;
- Reasonable believes that there will be a significant reduction in trading profits due to the impact of Covid-19 in the period between 1st May 2021 and 30th September 2021;
- The taxpayers profits must be no more than £50,000 and at least half of their total income for either the tax year of 2019/20 or the average taken from years 2016/17, 2017/18, 2018/19 and 2019/20.
These criteria remains unchanged from the fourth grant.
There Are Two Levels of Claim
The level of the grant that you receive will depend on the percentage by which your turnover has reduced.
- If your turnover has been reduced by 30% or more, the grant will cover 80% of three months average trading profit capped at £7,500.
- If your turnover has been reduced by less than 30%, the grant will cover 30% of three months average trading profit capped at £2,850.
Claims are expected to open late July and close on 30th September.
As with the previous grants, it is essential that you maintain records and proof of why you claimed the grant so that, should any queries arise, you can settle them quickly and efficiently.
Need any help with Accounts, Tax or SEISS Grants? Get in touch with the experts today; You Know It Makes Sense!