Details of the Fifth SEISS Grant

The fifth Self-Employment Income Support Scheme (SEISS) grant is different from the previous SEISS grant.

If HMRC think you are eligible, they will contact you from mid-July to give you a personal claim date.

If eligible, claims can be submitted anytime from the personal claim date until the 30th of September 2021.

What you should prepare now:
The amount of the fifth grant will depend on how much your turnover has been reduced in the year 2020-2021 compared to before the pandemic.
If you choose to claim you will need your turnover figures for:

  • a pre-covid year, that represents normal trading (2019-20 or 2018-19)
  • your 2020-21 trading year

How to find you 2019-20 (or 2018-19) turnover:
In most cases, your turnover figure is on your tax return. To find your tax return you can:

  • Log into your personal tax account
  • Check your business records
  • Contact the office
  • Ask HMRC for a copy of your paper return

How to work out your 2020-21 turnover:

  • Refer to your 2020 to 2021 self assessment tax return if already completed
  • Check the accounting software you use for your business
  • Go through your bookkeeping or spreadsheet records that cover your self assessment invoices and payments received
  • Check the bank account you use for your business to account for money coming in from customers

If any of the below apply to you it may change the way you calculate your April 2020 to April 2021 turnover:

  • If you have more than one business as a sole trader
  • If you’re a member of a partnership and have no other businesses
  • If you have more than one business, including a partnership
  • If your partnership started between April 2020 and April 2021
  • If you have Lloyd’s (underwriter) income

You do not need to submit your 2020-21 self assessment tax return at this time, even though HMRC are asking for your 2020-21 turnover.

Reporting SEISS grants on your Self Assessment tax returns

SEISS grants are taxable. The first, second and third grants must be reported on your tax return for the year in which they were received – in the majority of cases this will be your 2020-2021 tax return which will need to be submitted by 31st January 2022. If you received your first, second or third SEISS grant payment on or after 6th April 2021, you will need to report this on your 2021-2022 tax return instead.

The fourth and fifth grants should be included in your 2021-2022 Self Assessment tax returns which you cannot submit yet.

Your client manager will be reviewing your file to see how this announcement will impact you, though if you have any questions regarding this then please do not hesitate to contact us.