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SEISS: Britons warned of tax implications as claim deadline in two days – don

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SEISS claim deadlines appear to roll around quickly, but there is an important issue for Britons to confront this week. The deadline for the SEISS third grant will fall on Friday, January 29, 2021, giving self-employed people just days to act. A failure to meet the deadline could mean Britons potentially miss out on thousands of pounds worth of government support.

The Chancellor Rishi Sunak has outlined the eligibility criteria to make a claim against the third SEISS grant.

He explained to receive SEISS third grant funds, Britons must have had a new or continuing impact to their business from the COVID-19 pandemic, between November 1, 2020 and January 29, 2021.

They must reasonably believe this impact will have a significant reduction in a business’ profits.

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The grant is worth 80 percent of a self-employed individual’s average monthly trading profits and is paid out in a single instalment covering three months of profits.

This is capped at a total of £7,500 to provide the self-employed with support amid the ongoing pandemic.

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The terms of the fourth grant and whether it will be taxable are not yet clear.

However, the Chancellor Rishi Sunak has recently stated further information will be provided to self-employed Britons in the upcoming March Budget.

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To claim the SEISS third grant, self-employed people must meet all of the government’s eligibility criteria, and must check this before submitting a claim.

A person must have traded in both of the following tax years:

  • 2018 to 2019 and have submitted a Self Assessment tax return on or before April 23, 2020 for that year
  • 2019 to 2020

A person must declare they intend to continue to trade, and must reasonably believe there will be a significant reduction in trading profits.

Self-employed people must also other be currently trading but are impacted by reduced demand, or have been trading but temporarily unable to do so due to the pandemic. 

Self-employed people must also other be currently trading but are impacted by reduced demand, or have been trading but temporarily unable to do so due to the pandemic. 

Those eligible for the SEISS third grant must also keep evidence to support their claim.

Self-employed Britons can claim a grant through the SEISS scheme on the government’s official website.

Mike Parkes, Technical Director at GoSimpleTax, spoke to Express.co.uk ahead of the third deadline, saying: “The key word is eligibility. Even if you’ve not claimed for the grant before, make sure you check the criteria carefully. 

“While the rules on who can claim have remained largely the same, the circumstances of self-employed workers have undoubtedly changed since the second wave of grants were handed out.

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“As with the previous two rounds, those ineligible for the grant include people who’ve made a profit over £50,000, those who have not filed a self-assessment tax return for the previous two tax years (2018/19 and 2019/20), individuals who have other sources of income that is not from self-employed work (set at 50 percent) and those who are new to self-employment with no financial history.

“What people need to remember when applying for the grant is that they must demonstrate that their business has been significantly affected by the global pandemic, particularly in light of the third national lockdown.

“With only days to go until the SEISS deadline closes, it’s essential that people reassess their personal and financial circumstances – don’t assume if you were ineligible before, that the same will apply this time around.”

A person must declare they intend to continue to trade, and must reasonably believe there will be a significant reduction in trading profits.

Self-employed people must also other be currently trading but are impacted by reduced demand, or have been trading but temporarily unable to do so due to the pandemic. 

Those eligible for the SEISS third grant must also keep evidence to support their claim.

Self-employed Britons can claim a grant through the SEISS scheme on the government’s official website, but this claim must be made by a person themselves. 

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Ahead of the January 29 SEISS deadline, self-employed individuals are being encouraged to stay alert to scams – Britons should only apply for SEISS grants through the official government portal dedicated to the matter. 

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