Self-employment grant 3 – Who can claim?

Self-Employed Income Support (SEISS) grant number 3 – who can claim?

Self-employed individuals and members of partnerships are now able to claim for SEISS grant 3. The criteria are stricter than before. Please read on. Who can claim?

• you must have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although you do not have to have claimed)

• You must declare that your business has been impacted by REDUCED DEMAND and that you reasonably believe there will be a SIGNIFICANT REDUCTION IN YOUR TRADING PROFITS (vs simply “adversely affected” in the case of grants 1 and 2) due to Covid-19 in the qualifying period (see What the grant covers)

• declare that you intend to continue to trade and either:

  • are currently actively trading but are impacted by reduced demand due to coronavirus

  • were previously trading but are temporarily unable to do so due to coronavirus

What does the grant cover? • Grant 3 contributes towards a loss in demand for the months November 2020 – January 2021 at a rate of 80% of 3 months average trading profits (based on years 2016/17 – 2018/19) • Grant 4 contributes towards a loss in demand for the months February – April 2021 – The %rate is yet to be announced

How to claim

• Just like SEISS grants 1 and 2 each self-employed person must make their own claim. This is not something an accountant can help you with.

• The online portal to claim grant 3 is available by following the link below to the full guidance (the claims portal will be open for you starting 30 Nov – 4 Dec (depending on the time slot you’re allocated).

Full HMRC guidance and link to claim here: Claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

Worthwhile reminders

• Each of these grants is taxable – businesses and self-employed would do well to budget for future tax bills accordingly

• Record keeping – when claiming a grant remember to keep documentation showing evidence of how your business has experienced reduced demand due to COVID19.

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