What is SEISS?
This scheme is very much helpful for self-employed as it comes up with grants, which covers the period from November 2020 to January 2021 and February 2021 to April 2021.
Regarding
Extension, you have to be eligible for a first and second grant and need to
show the required documents which proves that you intend to trade further,
however, due to Coronavirus, your business has been impacted.
Eligibility
Criteria:
It has to be noted
that 40% of average trading profits will be considered for the third grant and
the amount of £3750, it will get capped. However, in terms of the fourth grant,
it is still kept under review and information will be revealed soon. There is
good news for the businesses, which has been affected due to pandemic as they
are now allowed to claim for third and fourth grants.
The businesses must
show the following evidence to claim the grants:
- Business is running smoothly but got affected
by less demand due to Coronavirus.
- Due to COVID-19 19 pandemic, the businesses
are temporarily closed.
- The businesses who are not eligible for first
and second grants, the scheme has not been extended to them. Also, the
details received from 2019/20 returns will not be considered. HMRC will
now develop new guidance on third and fourth grants as it has temporarily
withdrawn guidance on the scheme.
Third and Fourth
Grants:
The grant will be increased from the initial announced level of 40% of trading profits to 80% for November 2020. Hence, raises the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.
The fourth grant would cover a percentage of average income for the period from February to April 2021, but how much this will cover or when the deadline for applying will be, is yet not known.
Guidance on Claiming Third and Fourth grant:
HMRC and the British government guided applications in due course. From 30 November 2020, the online service for the third grant will be available. The level of the fourth grant reviewed by HMRC and the same set in due course.
The grant will be paid in one lump sum instalment and HMRC has informed that those who didn’t claim first and second grants, they can claim for third and fourth grants if needed. In short, you don’t need to claim the first or second payments to claim the third and fourth grant.
If you have any
questions, we at Doshi Outsourcing can help you with understanding the
eligibility and criteria of these grants. Contact us today!
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