Self-Employment Income Support Scheme (SEISS) fifth grant

Self-Employment Income Support Scheme (SEISS) fifth grant

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Thank you for joining this webinar about the  Self-Employment Income Support Scheme, the fifth   grant. I'll refer to it as SEISS throughout the  rest of the webinar. Guidance for the fifth grant   has now been published on GOV.UK and this  webinar reflects the latest information available.   We also recommend that you regularly visit GOV.UK   where you can find more information about SEISS and   other support available. You can also register  to get email alerts when changes are made. During the webinar we'll be looking at an  overview of the scheme, who can claim, how   much you may be entitled to, how to claim the  fifth grant, what happens after you've claimed   and information about some  other support that's available.  

We'll also look at a few examples to give you  a better understanding of how the scheme works. Let's start with the overview of the scheme.  The SEISS scheme supports self-employed individuals   including members of business partnerships whose  income has been affected by COVID-19 (Coronavirus). The fifth SEISS grant covers the period the  1 May 2021 to the 30 September 2021.  

It provides support to eligible  self-employed individuals   who are currently trading but are  impacted in this period by reduced demand   due to coronavirus or have been trading but are  temporarily unable to do so due to coronavirus. To work out your eligibility for the  fifth grant we'll first look at your   2019 to 2020 Self Assessment tax return your trading  profits must be no more than £50.000 and at   least equal to your non-trading income. If you're  not eligible based on your 2019 to 2020 tax return,   we'll then look at the tax years  from 2016 to 2017 to 2019 to 2020 inclusive.

If you're eligible and want to claim, then  you must make your claim for the fifth grant   by 23:59 on the 30 September 2021. If you  think you're eligible but we haven't contacted   you with a personal claim date, you can check  by signing into the online claim service on   GOV.UK. The amount of the fifth grant will be  determined by how much your turnover has gone down   in a 12 month period from April 2020 to April  2021 compared to a year from before the pandemic.   If your turnover increased you may still  qualify for the 30% grant. You'll still need   to reasonably believe that due to reduced demand  or inability to trade between the 1 of May and   30 September 2021 you will suffer  a significant reduction in trading profits.

The fifth grant will be paid out in a single  instalment and provide a taxable grant worth   80% of 3 months average trading  profits capped at £7.500    if your turnover is down by 30%   or more or 30% of 3 months average   trading profits capped at £2.850 if your turnover is   down by less than 30%. We'll explain  more on how to work out your turnover later. To make a claim for the fifth grant you must  have reasonable belief that you will suffer   a significant reduction in trading profits  due to the reduced business activity,   capacity, demand or inability to trade due  to coronavirus between 1 May 2021   and 30 September 2021 and  intend to continue to trade as well.

HMRC expects you to make an honest assessment  about whether your business has been impacted   by coronavirus. You can make a claim even if  you didn't make a claim for a previous grant.   It will however, be subject to Income  Tax and self-employed National Insurance.   If you receive the fifth grant you must  report this on your self assessment tax return   for 2021 to 2022. This is due to be  sent to HMRC by 31 January   2023. SEISS grants and other coronavirus payments  have their own boxes on the 2020 to 2021 tax return.

These grants are not counted  as access to public funds   you can claim the grant on  all categories of work visa. Let's have a closer look at the fifth  grant starting with who can claim. The eligibility criteria are the same as the  fourth grant. You must have been trading in both   the tax years 2019 to 2020 and submitted your Self  Assessment tax return by 2 March   2021 and the tax year 2020 to 2021 or would  have been if not affected by coronavirus.   If you weren't eligible for the fourth grant  based on the tax returns you've submitted   by 2 March 2021 you won't be  eligible for the fifth grant either.

If the information in your Self Assessment  returns shows you may be eligible then you can   claim the fifth grant if you're a self-employed  individual or a member of a business partnership.   If your business has been impacted  by coronavirus between the 1 May   2021 and the 30 September and if you meet the  eligibility conditions. We'll let you know more   about the specific impact your business must have  experienced to be eligible later in the webinar. You can't claim the grant if you  trade through a limited company   or a trust. If you claim Maternity Allowance this  will not affect your eligibility for the grant.   As with the previous 4 grants HMRC will assess  if you're eligible for the fifth grant based   on your trading profits and non-trading  income on your Self Assessment tax returns.   Firstly, we'll look at your Self Assessment  tax return for 2019 to 2020. Your trading  

profits must be no more than £50.000   and at least equal to your non-trading income. If you're not eligible based on the 2019-2020  tax return we'll look at up to 4 tax years   depending on which of the following years you're  traded in 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020. If you have a gap in the years you have traded,  you'll only use your most recent tax returns   after the gap to work out your eligibility. As  mentioned before you must have been trading   in both the 2019 to 2020 and the 2020 to 2021 tax  years or would have been if not affected by coronavirus. You must also have trading profits  not a trading loss based on either your 2019   to 2020 tax return or an average over the  4 tax years 2016 to 2017, to 2019 to 2020.

As with the fourth grant you must  also either be currently trading   but be impacted by reduced capacity,  demand or activity due to coronavirus   or have been trading previously but be  temporarily unable to do so due to coronavirus. And you must declare that you  both intend to continue to trade   and reasonably believe that you  will suffer a significant reduction   in your trading profits due to reduced activity,  capacity or demand or inability to trade   due to coronavirus. We'll now see some more  about reasonable belief. In order to claim you   must have reasonable belief that you'll suffer a  significant reduction in trading profits because   between the 1 May 2021 and 30 September  2021 you've had either reduced business activity,   capacity or demand due to coronavirus or  been unable to trade due to coronavirus. You must reasonably believe that you'll suffer  a significant reduction in trading profits due   to reduced business activity, capacity, demand or  inability to trade due to coronavirus between the   1 May 2021 and 30 September 2021. You  must keep evidence that shows how your business   has been impacted by coronavirus resulting in  less business activity than otherwise expected.  

HMRC expects you to make an honest assessment  about whether you reasonably believe   your business will have  significant reduction in profits. You shouldn't take into account previous SEISS   grants or other coronavirus scheme support   payments you've already received when deciding  whether you reasonably believe that you will   suffer a significant reduction in trading  profits for SEISS purposes. We expect you to   do the right thing and make an honest assessment  that your business has been sufficiently affected   to claim and to keep appropriate records as  evidence. Businesses impacted by reduced demand.   For the fifth grant this applies to your business  if it has been impacted by reduced demand,   activity, or capacity due to coronavirus between  1 May and 30 September 2021.   For example, you have fewer customers  or clients than you'd normally expect   resulting in reduced activity due  to social distancing or government   restrictions. You have one or more contracts  that have been cancelled and not replaced   or you carried out less work  due to supply chain disruptions.

You must not claim if the only impact on your  business is increased costs, for example if you've   had to purchase face masks and cleaning supplies.  This would not be considered reduced demand. Businesses previously trading  but temporarily unable to do so.   This applies to you if you've been temporarily  unable to carry out your business activities due   to coronavirus because for example your business  has had to close due to government restrictions,   you've been shielding or self-isolating in  line with NHS guidelines and are unable to   work from home, if you've been abroad and  have to self-isolate this doesn't count,   or you've tested positive for coronavirus and  are unable to work, you can't work due to caring   responsibilities for example as a result  of a school or child care facility closures. If you had to close before the 1 May 2021 and  continue to be closed for a period of time between   the 1 May 2021 and 30 September  2021 you can still claim if you're eligible.   How different circumstances affect eligibility.  There are some circumstances that can affect  

your eligibility such as if your return is late,  amended or under inquiry, if you're a member of a   partnership, if having a new child affected the  trading profits you reported for the tax year   2019 to 2020 or means you didn't submit a tax return  for that year, if you have loans covered by the   loan charge and haven't agreed a settlement  with HMRC before 20 December 2019. If you claim averaging relief,  if you're a military reservist,  if you're non-resident or  chose the remittance basis.   See fuel guidance on GOV.UK for more information  on how your circumstances affect your eligibility. Let's now find out how much you may be entitled to.

If you meet the eligibility criteria, the amount  of the fifth grant will be determined by how   much your turnover has gone down after  you've compared your two turnover figures.    As the grant is now based on how much your turnover  is down in the pandemic year if you previously   claimed a SEISS grant the fifth grant will be a  different amount to what you previously received. If your turnover is down by 30% or  more, the grant is based on 80% of 3   months average trading profits capped at a maximum  of £7.500 in total.   If your turnover is down by less than 30%, the grant is based on 30% of   3 months average trading profits capped at £2.850. The grant   is paid in a single instalment and is subject to  Income Tax and self-employed National Insurance.  

You don't need turnover figures if  you started trading in 2019 to 2020   and didn't trade in the tax  years 2018 to 2019, 2017 to 2018 or 2016 to 2017. If you don't need to tell us about your turnover   you'll get 80% of 3  months average trading profits. How to work out your turnover. Turnover includes  the takings fees, sales or money earned or received   by your business. The turnover figure should  not include any coronavirus support payments   or anything reported as any other income on  your tax return including Universal Credit.

You'll need to tell us about your turnover  if you traded in a 2019 to 2020 tax year   as well as in any of the following years  2018 to 2019, 2017 to 2018 or 2016 to 2017.   Before you claim you must first work out  your turnover for the 12-month period.   Your period must start on any day from   1 April 2020 to 6 April 2020   and secondly find a previous year's  turnover to use as a reference year.   You'll need to have both figures  ready when you make your claim.   To find your figures you can refer to your 2021  Self Assessment tax return if you've completed it   or ask your accountant or tax advisor or check  the accounting software you use for your business.  

You can also go through your bookkeeping  or spreadsheet records that cover your   self-employment invoices and payments received or  check the bank account you use for your business   to account for money coming in from customers.  You should check that your figure is accurate.   HMRC will be able to check your figures after  you submit your tax return for this period.   Your figure must include the turnover from all  of your businesses. The turnover figure should  

not include any Universal Credit or coronavirus  support payments, this includes previous SEISS    grants, Eat Out to Help Out payments or local  authority or devolved administration grants. More than one business and you're a sole trader.  Your figure must include the total turnover   from all of your businesses. This includes any new  business started between April 2020 and April 2021.

For partnerships you need to work out  the partnership's total turnover figure. If you have more than one  business including a partnership.   For each partnership you'll need to include your  % share of the partnership's turnover.   This will be the same as the %  of profit you took from each partnership   in your reference year even if your profit  sharing % changed in 2020 to 2021.   You should add this to the turnover from  your other businesses. If the partnership  

started between April 2020 to April 2021 you  need to work out your share of the turnover. If you have Lloyd's income as well as income  from another business you should use the   turnover from your other business. If you only  have Lloyd's income you'll need to contact us. How to find a previous year's  turnover to use as a reference year.   In most cases you should use the turnover reported  in your 2019 to 2020 tax return as a reference year.   Your figure needs to be based on a 12-month  period and include the total turnover    for all your businesses. Your 12-month  period does not need to start in April.

If 2019 to 2020 was not a normal year for your  business you can use the turnover reported   on your 2018 to 2019 tax return. For example if  you were on carer's leave, long-term sick   leave or had a new child or carried out  reservist duties, lost a large contract   or were eligible for the fifth grant but did not  submit a 2019 to 2020 tax return. There is a box for   the turnover on your tax return. You can find tax  returns by logging into your personal tax account,   checking your business records  or asking your accountant.

If you have an accounting period  longer or shorter than 12 months   you'll need to work out what  your 12 month turnover was. If you have more than one business as a sole  trader your figure must include the turnover   from all of your businesses. If you have more  than one business including a partnership.   For each partnership you'll need to include your  percentage share of the partnerships turnover.   This will be the same as the % of profit  you took from each partnership in this year.   You must add this to the turnover  from your other businesses. If you're a member of a partnership  and have no other businesses.  

You need to use the partnership's  total turnover figure. Trading profits. This is  shown on your tax calculation   as either profits from  self-employment or partnerships. We'll work out your total trading profit  after deducting any allowable expenses,   flat rate expenses, capital allowances and so on. If your annual gross trading income  from one or more trades or businesses   is more than £1.000 you  may have used the tax free allowances   instead of deducting any  expenses or other allowances.

We'll work out your trading profit after deducting  any tax-free allowances. We won't deduct from   your trading profits any losses brought forward  from previous years or your personal allowance. We'll add losses brought forward from previous  years to the amount shown on your tax return   as total taxable profits from this business. That  is the amount after expenses have been deducted   and not the trading profits that is  before expenses have been deducted.

Profits from partnerships. Your share  of the partnership's trading profits is   worked out by taking all partnership income and  deducting anything that is non-trading income   such as investment income. Again any losses  brought forward from previous years will be added   to the amount shown as your share of the total  taxable profits from the partnerships business. When the paper short return your  trading profit after allowable   expenses is shown on your tax return as profit. Here's an example of trading profit if  you've claimed the trading allowance.  

For 2016 to 2017 the trading income is £21.000.   No trading allowance has been claimed  meaning the trading profit is also   £21.000 pounds. For the following 3 years the  trading allowance of £1,000 pounds has been claimed.   This means that the total profit for each of  these tax years is reduced by £1.000.

If you have more than one trade in the same  tax year we'll add together all profits   and deduct any losses for all trades  when working out your trading profit.   So if the trading profit for  trade 1 is £60.000    and you made a loss of £20.000   in trade 2, the total profit is £40.000 If you have traded for all 4 tax years  to work out your average trading profit we add   together all profits and deduct losses for all  4 tax years where you've had continuous trade,   then divide by 4. So in this example 2016 to 2017 to  2018 to 2019, your trading profit was £60.000 for   each of the three years equalling £180.000.   In 2019 to 2020 you suffered a loss of £30.000  

which means that the total trading profit  for the 4 years is a total profit of   £180.000 pounds minus £30.000 pounds giving  us £150.000.    To arrive at the average profit for the 4 years  we divide £150.000 by   4 to give us £37.500.   If you didn't trade in the tax year 2016   to 2017 to work out your average trading profit we  add together all profits and deduct losses for the   three tax years 2017 to 2018 to 2018 to 2020 then divide by  3. In this example the profits over the 3  

years are added together and equals £105.000 and then divided by 3 to give us an average of   £35.000. If you didn't trade in the tax year  2017 to 2018, we'll work out your average trading   profit based on the tax years 2018 to 2019 and 2019 to 2020  only, even if you traded in the tax year 2016 to 2017.   In this example we don't consider the profits  made in 2016 to 2017. To work out the average we 

divide £80,000 by 2 to give  us an average of £40.000. Non-trading income. This is the amount recorded  as total income received on your online or   paper tax calculation less your trading  income. The figure does not include losses.  

HMRC will work out your non-trading  income by adding together all of your   income from earnings, property income, dividends,  savings income, pension income, overseas income,   miscellaneous income including  taxable social security income. It's important to note that the grant  is also recognised as income for the   purposes of claiming benefits and credits  including Tax Credits, Universal Credit   and Council Tax Reduction. If you claim any of  these it may affect the amount you're entitled to.   You'll need to report the grant  as self-employed income for any   Universal Credit claims, self-employed income  trading profits for any tax credit claims. We'll now take you through how  to claim the fifth SEISS grant. You'll be able to claim for the fifth grant  until 23:59 on 30 September 2021.  

If you're eligible you should receive a letter,  text or email from us with your personal claim   date by the end of July. If we haven't contacted  you about the fifth grant you'll be able to see   if you're eligible or why you're not as part of  the claim process when you access the SEISS claims   service. You must make the claim yourself, you must not ask a tax agent or advisor   to claim on your behalf as this will trigger  a fraud alert which will delay your payment.

Claiming online is quick and easy  using your Government Gateway account.   You can do it on a smartphone. This will help  keep our advisors free to help customers   who need it most. Search for Self-Employment  Income Support scheme on GOV.UK. Information needed to make a claim. To avoid delays  please check that you can log into the Government  

Gateway before your personal claim date. Please  also check your contact details are correct in   your Government Gateway account. If you don't  have an account or have forgotten your details   follow the instructions on GOV.UK by  searching HMRC services sign in or register. To access the claim tool you'll need your  Self Assessment Unique Taxpayer Reference   number, that's your UTR, your National Insurance  number, your Government Gateway user ID and   password. These will be the same as those used  for your previous SEISS claims if you've made any. If this is your first time claiming a SEISS    grant you may be asked additional  questions to prove your identity. These could relate to any of the following. Your  UK passport, your driving licence, information held  

on your credit file such as loans credit cards  or mortgages, your Self Assessment tax return   within the last three years, it could also  relate to your tax credit claim, your P60   or one of your 3 most recent payslips. Please  have this information ready when making your claim,    your claim may be delayed if you cannot  answer the identity verification questions.   You'll also need your turnover figures for April  2020 to April 2021, 2019 to 2020 and/or 2018 to 2019.

You'll be asked to select whether you'd like  your grant paid into a personal or business   bank account. This must be a UK bank account.  Only provide bank account details where a   Bacs payment can be accepted. You'll need to  provide details including, the name on the account,   sort code, the bank account number and  your address linked to your bank account.

Amendments to tax returns. For the fifth grant  if you make an amendment to your tax return   on or after 3 March 2021 you must  tell us within 90 days if the amendment either   lowers the amount you're eligible for  or causes you to no longer be eligible. This is because any amendments  made after 2 March 2021   wouldn't have been considered when looking  at your eligibility or the amount of grants   you're entitled to. You may therefore need  to pay back some or all of the grant if an   amendment lowers the amount you're eligible  for or causes you to be no longer eligible. If you don't tell us we'll contact you  after the deadline for making amendments   to tell you what amounts you'll need to pay back.  If you don't tell us within 90 days you may also   have to pay a penalty. You don't need to tell us if  either the amount you're eligible for is lowered  

by £100 or less or you're no longer eligible  and the grant you received was £100 or less.   If you're not sure if your amount of grant has  lowered, you should contact us for further help   or speak to your authorised agent. The role of agents. If you use an accountant or tax  agent they must not make the claim on your behalf.   If your accountant or tax agent tries to claim  on your behalf this will trigger a fraud alert   that will delay your payment and you'll need  to call HMRC to resolve the issue yourself.   They can support you to get ready to make  a claim yourself such as helping you with   the turnover test and suggesting other forms of  support you may be eligible for in addition to or   instead of SEISS. When you're applying, please  be aware of scams. It's really important that   you protect yourself from fraud. We are aware  of an increase in scam emails, calls and texts.

We're urging customers to be careful if they're  contacted out of the blue by someone asking for   money or personal information. There are a lot of  scams around where fraudsters are calling, texting   or emailing customers claiming to be from HMRC.   If in doubt we advise you not to reply directly   to anything suspicious but to contact HMRC  straight away, search for HMRC scams on GOV.UK. We'll now look at what  happens after you've claimed.

After you've claimed we'll undertake  checks to confirm the details.   If your claim is approved it will be paid directly  into your bank account within 6 working days   paid in a single instalment. The online system  will let you know how much you will be paid   and how HMRC calculate that amount  based on your previous tax returns.

You must keep a copy of all records in line with  normal self-employment record-keeping requirements   including the amount claimed  and the grant claim reference. Further evidence. If your business  recovers after you've claimed   this won't affect your eligibility for the  grant. Eligibility is based on your reasonable   belief at the time you made your claim that your  trading profits would be significantly reduced.   You must keep evidence to support your claim.

If you're currently trading but have reduced  demand you must keep any evidence that   your business has had reduced demand due to  coronavirus at the time you made your claim.   This includes business accounts showing  reduction in activity compared to previous years,   records of reduced or cancelled contracts  or appointments, fewer invoices, a record   of dates where you had reduced demand or  capacity due to government restrictions. You must keep evidence if your business has been  unable to trade due to coronavirus. This includes   a record of dates where you had to close due to  government restrictions, track and trace emails   if you've been instructed to self-isolate  in line with NHS guidelines and are unable   to work from home. If you've been abroad and had  to self-isolate this does not count. A letter or   email from the NHS asking you to shield or test  results if you've been diagnosed with coronavirus.

As previously mentioned, SEISS grants have their  own boxes on the Self Assessment tax return.   You must report to any SEISS grant received  on your Self Assessment tax return as shown   on this table. The SEISS grant, the first 3 SEISS grants 1, 2 and 3 must be shown in the tax   return for the tax year 2020 to 2021 and the filing  deadline for that return is 31 January   2022. Grants 4 and 5 must be  included in the 2021 to 2022 tax return   and the deadline for filing that return  is midnight on the 31 January 2023.

We'll now have a look at what  other support's available for you.   You may be able to claim for Universal Credit. If  you make a claim for Universal Credit this payment   may be reduced or stopped if you claim the SEISS grant. Other tax credits and benefits may be affected too.   You should check how tax credits  and other benefits affect each other   and find out what to do if  you're already getting benefits.

The government is also providing the following  help for the self-employed. Recovery Loan Scheme,  Restart Grant, Additional Restrictions  Grant and Test and Trace support payments. Help with paying your tax bill. Customers  unable to pay their tax bill on time can  

find more information about  financial support on GOV.UK. We've come to the end of this webinar,  thank you very much for watching.

2021-07-29 04:47

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