Claiming the fifth SEISS grant
The Self Employed will be able to make claims for the fifth SEISS grant when the online claims service opens in late July. From mid-July, HMRC will be contacting those who may be eligible to let them know their personal claim date. This will be the earliest date they can make their claim.
The fifth grant will be determined by a turnover test which considers how much turnover has gone down by in the 2020-21 tax year due to the pandemic.
Those who were not eligible for the fourth grant, will not be eligible for the fifth grant either as HMRC is using the same tax returns to determine eligibility for both grants. Guidance is now available:
- If you are eligible for the fifth SEISS grant and intend to claim, you need to calculate the 2020-21 turnover figure. HMRC will make contact from mid-July to let you know if needed..
- You do not need to submit the 2020-21 Self Assessment tax return at this time, even though HMRC are asking for the 2020-21 turnover. The deadline for the 2020-21 Self Assessment tax return is 31st January 2022.
- As with previous SEISS grants, agents cannot claim on behalf of their clients.
Reporting SEISS grants correctly on Self Assessment tax returns
Over the last few months HMRC have noticed an issue arising from SEISS grants being reported incorrectly on 2020-21 Self Assessment tax returns. SEISS grants are taxable and subject to self-employed National Insurance contributions, which means they need to be reported on tax returns.
HMRC have implemented an auto-correct solution that will address the majority of any new incorrect returns. However, depending on the circumstances, your may need to take actions to avoid being charged tax and self-employed National Insurance twice on the grant(s) received.
Contacting the Self Employed for further checks
HMRC have begun contacting some self employed who may be eligible for the fifth SEISS grant if they started trading in 2019-20, to verify identity. They are asking for:
- one form of identity and three months’ worth of bank statements from the 2019-20 tax year.