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Fifth Grant Guidance – Self Employment Income Support Scheme open to claims from late July

by | Jul 23, 2021 | Covid, Self assessment, Tax planning, VAT

If you are eligible for a fifth grant you will soon hear from HMRC inviting you to claim. The process is the same as with previous SEISS grants the only additional section is where HMRC asks you to input your turnover figures.

Information to have ready

  • Your bank details, you will need them for the final part of the claim
  • 2020-2021 turnover figure. You do not need to have submitted your self-assessment turnover figure for 2020-2021.
  • Comparison turnover figure for 2019-2020. See section on turnover below for more details. If 2019-2020 was not a typical trading year for you, you can use your turnover figure for 2018-2019.

When you do not need to submit comparison figures

You will be able to claim a grant of 80% of 3 months average trading profits and you don’t need to compare turnover figures if you:

  • started trading in 2019-20 or
  • were not self-employed or a member of partnership between 2016-17 and 2018 -19.

Turnover

  • Turnover is the total amount of the following over a 12-month period: Takings, fees, commission, sales, money earned. 
  • Do not include any SEISS grants received, Eat Out to Help Out payments, local authority or devolved administration grants in your turnover figure.
  • If you have more than one business your turnover figure should include a turnover figure for all of your businesses added together.
  • The turnover figure needs to cover a 12-month period. It does not have to be from 6th April 2020 it can start on any day from 1 to 6 April 2020. Click here for more guidance.
  • If your accounting period is longer or shorter than 12 months you will need to calculate what 12 months turnover would have been (pro rata)
  • If you started or ceased a business in 2020 to 2021 you should include the turnover received between April 2020 and April 2021, even if this covers less than 12 months.
  • If you have Lloyd’s income as well as income from another business, use the turnover from your other business. If you only have Lloyds income, you’ll need to contact HMRC

Turnover – Partnerships

  • If you are a member of partnership you need to use the turnover figure for the partnership.
  • If you’re a member of a partnership and also have another business for each partnership, you’ll need to work out and include your percentage share of the partnership’s turnover. This will be the same as the percentage of profit you took from each partnership in your reference year, even if your profit share percentage changed in 2020 to 2021. You should add this to the turnover from your other businesses.
  • If you’ve joined a partnership between April 2020 and April 2021 and have other businesses, you need to work out your share of the turnover. It should be the same percentage of profit you took from the partnership in the 12-month period, April 2020 to April 2021. You should add this to the turnover from your other businesses.

Not sure how to work out your turnover figure or where to find it? contact us

Where to find your turnover on your tax return

There is a box for turnover on your tax return.

It is important that the turnover figures you input are accurate, if you need any assistance in finding or checking your turnover contact us.

How HMRC calculates the fifth SEISS grant

The amount of the fifth grant will depend on how much your turnover had gone down. If your turnover is down by 30% or more, you will receive a grant of 80% of 3 months average trading profits capped at £7,500. If your turnover figure is down by less than 30% you will receive a grant of 30% of 3 months average trading profits capped at £2,850.

Caution

HMRC are receiving very high numbers of calls, however you can contact HMRC if you cannot get the help you need online. You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam. You can check a list of genuine HMRC contacts.

Disclaimer

This information is based on information available as of 19 July 2021. Further information and guidance will be made available as it is released.

Further information

For guidance on calculating turnover click here.
Click here for other help you can get.