Henry and Banwell Chartered Accountants > News > COVID-19 > COVID-19 Self Employment Support Income Scheme – 3rd Payment

COVID-19 Self Employment Support Income Scheme – 3rd Payment

  • Posted by: Michael Winkelmann

HMRC’s claims portal for the third Grant opens from 1 December 2020.

Only those eligible for the first and second Grants will be eligible for this third grant.

The website address to make the claim is – https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme

At a glance

The 3rd Grant is up to a maximum of £7,500.

  • The Grant  cover the 3 month periods 1 November 2020 to 31 January 2021 (3rd grant) and 1 February 2021 to 30 Apr 2021 (4th grant).
  • The % for the third grant is 80% and the decision on the % for the fourth

Eligibility – the rules have been tightened

  1. You must either be currently trading and impacted by reduced demand, or have been trading but be temporarily unable to do so due to coronavirus; and
  2. You intend to continue to trade, and reasonably believes that the impact on their business will cause a significant reduction in their trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021.

HMRC has specifically said that a reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.

No claim can be made where the reduced activity, capacity or demand is caused solely because the person is required to self-isolate, or care for a person required to self-isolate, as a result of travelling to the UK.

The third grant is calculated in the same way as the first and second grants (ie, it is based on the same tax years and the £50,000 income cap and 50% of income tests apply as before), so none of the previously excluded groups will qualify.

Qualifying conditions

The same conditions apply to both rounds of grant funding. These conditions relate to eligibility for the grants and not to the amounts you will receive if you do qualify, details of which are set out at How will the grant be calculated? below.

You are self-employed and you:

  • Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19 on or by 23 April 2020.
  • Have traded in the tax year 2019-20.
  • Are trading when you apply or would be except for COVID-19.
  • Intend to continue to trade in the tax year 2020-21.
  • Have lost trading/partnership trading profits due to COVID-19. You should keep records to support this.
  • Average self-employed trading profits between £0 – £50,000.
  • Only those eligible for the first and second Grants will be eligible for this third grant.

Additionally, more than half of your total income comes from self-employment.

One of the following conditions A to C must be met to be eligible for the scheme.:

  1. Your trading profits/partnership trading profits are between £0 – £50,000 for 2018-19 and those trading profits are more than half of your total taxable income for that year, or
  2. Your average trading profits/partnership trading profits for the three years 2016-17, 2017-18, and 2018-19 are between £0 – £50,000 and your average trading profits for those years are more than half of your total taxable average income for those same years, or
  3. If you did not trade in 2016-17, your average trading profits/partnership trading profits for the two years 2017-18, and 2018-19 are between £0 – £50,000 and your average trading profits for those years are more than half of your total taxable average income for those same years.