Guidance for claiming the fifth Self Employment Income Support Scheme (SEISS) grant has been updated.
The grants are paid to eligible businesses affected by the coronavirus pandemic and are subject to income tax and self-employed National Insurance contributions.
The changes from HM Revenue & Customs (HMRC) follow the introduction of the new ‘turnover test’, requiring claimants to compare the revenue of two tax years.
The level of grant you receive may now change depending on how much revenue you have lost.
The test involves working out your turnover for a 12-month period, starting on any day from 01 April 2020 to 06 April 2020, and comparing your turnover from either 2019 to 2020 or 2018 to 2019 to use as a reference year.
Applicants with a reduced turnover of 30 per cent or more are entitled to 80 per cent of three months’ average trading profits, up to £7,500.
Applicants with a reduced turnover of less than 30 per cent, meanwhile, are entitled to 30 per cent of three months’ average trading profits, up to £2,850.
What’s changed for self-employed partnerships?
The amended guidance, found here, states that members of partnerships may need to work out their percentage share of the partnership’s turnover to be eligible to claim the fifth grant.
“If you were a member of the same partnership in your reference year and in April 2020 to April 2021 and had no other businesses in either of those years, you’ll need to work out and use the partnership’s total turnover figure,” the guidance reads.
“If you were a member of the same partnership in the tax year 2019 to 2020 and in the period April 2020 to April 2021, and you also had other businesses at any time in either of those periods, you’ll need to work out and include your percentage share of the partnership’s turnover.”
How do I work out my percentage share of the partnership?
The percentage share of the partnership will be the same as the percentage of profit you took from the partnership in your reference year, even if your profit share percentage changed after your reference year.
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