HMRC have a new turnover test for SEISS 5.
They have now published their full guidance on the eligibility criteria to receive the 5th instalment of the Self Employed Income Support Scheme (SEISS).
Most of the eligibility remains unchanged from grant 4 with the added criteria that the maximum grant of £7,500 is only available where income has fallen by 30% or more. Where the income reduction is less than 30% the grant will be capped at £2,850 for the 3 months
When you make your claim, the online service will ask you for your turnover figures and compare them for you. The claims service will then tell you if you can claim the higher or lower grant amount so it’s important to be ready with your figures.
To comply with the new turnover test for SEISS 5 you must:
- Work out your turnover for a 12-month period starting from 1 April 2020 to 6 April 2020. This is an exact 12 months so if your year-end is not 31 March or 5 April you will need to calculate it separately from what went on your tax return.
- Find your turnover from either 2019 to 2020 or 2018 to 2019 ( only in certain circumstances where 19/20 was not a normal year) to use as a reference year. This will be on your tax return.
You will need to have both figures ready when you make your claim. The best place to get these figures will be from your tax returns or accounts as they will be checked by HMRC. You should include figures from all of your businesses. Where you are a partner you should the partnership’s turnover unless you have other businesses when you can include just your share of the turnover.
There are special rules for newly self-employed and those that did not trade for the full 12 months in 20/21so check the guidance carefully.
Do not include previous SEISS grants, Eat Out to Help Out payments or any local authority grants.
The scheme will open in late July and applications musty be completed by 30 September 2021.
If you need help calculating these figures please get in contact.