Martin Lewis, an expert in money saving, regularly provides help with money related matters to people across the country. Helping through the pandemic, Martin has posted advice on support programs like SEISS, and his latest alert was no exception. Speaking to social media, Martin spoke directly to freelancers who may be considering seeking help.
Brits can expect to be contacted with their personal claim date from mid-July for more details.
Over the past few weeks, Martin has also shared an update on the Fifth Grant which has been made available on the government website.
He confirmed the “brief information” released by HMRC regarding this form of support.
Martin observed that the eligibility criteria, perhaps the most important issue to consider in the first place for self-employed workers, appear to be the same as those offered by the Fourth Grant.
To be eligible to receive the SEISS Five Grant, a person must be a self-employed person or a member of a partnership.
They must also have transacted in the following tax years in order to qualify:
- 2019 to 2020, having submitted a tax return no later than March 2, 2021
- 2020 to 2021
A person must either negotiate currently but be affected by reduced demand due to COVID-19, or have traded in the past but is temporarily unable to do so due to the pandemic.
To determine a person’s eligibility, HMRC will review a self-assessment tax return from 2019 to 2020.
Business profits must not exceed £ 50,000 and at least equal to a person’s non-business income.
If a person is not eligible based on their 2019-2020 income tax return, then HMRC will review previous years.
To claim, a person must declare that they intend to continue trading.
They must also declare that they reasonably believe there will be a significant reduction in their business profits due to COVID-19 from May to September 2021.
Individuals must also keep evidence to this effect to demonstrate how their business has been affected by decreased activity, capacity, demand, or inability to trade.
A major change with the Fifth Grant from previous forms of self-employment assistance is the amount a person can receive.
This will be determined by the reduction in an individual’s turnover between April 2020 and April 2021.
For a 30% or more reduction in turnover, people can get 80% of the average three-month trading profit of up to £ 7,500.
For a reduction in turnover of less than 30 percent, however, individuals will get 30 percent of the three-month average business profit up to £ 2,850.