Those who are eligible only a have a few weeks left to claim this support from the Government as the final date to make the claim is September 30, 2021. Freelancers are able to claim the fifth SEISS grant if their business profits have been impacted by coronavirus between 1 May 2021 and 30 September 2021.
Non-trading income is any money that one makes outside of their business. For example, this could be sums gained during a part time job.
Where a claimant is not eligible for a grant based on their 2019 to 2020 trading profits, HMRC will then look back at previous years to see if money can be awarded.
HMRC will already have contacted you if you’re eligible for the grant based on your tax returns.
Lastly, step three involves a person’s decision – how to decide if they want to claim.
Applicants must confirm they intend to keep trading in the 2021 to 2022 tax year.
People should also tell HMRC that they reasonably believe there has been a ‘significant reduction’ in their trading profits due to the impact of COVID-19 between May 1, 2021 and September 30, 2021.
HMRC notes the fifth grant is different from previous grants as in most cases, when making a claim claimants will need to tell the Government about their business turnover.
This is because different amounts will be awarded based on what the turnover figures are.
To make a claim, freelancers will need to calculate two different figures, one for April 2020 to April 2021, and one for either 2019 to 2020 or 2018 to 2019.
HMRC will then compare these figures to determine how much is paid out.
Should the claimant’s turnover figures be down by 30 percent or more, they’ll get a grant covering 80 percent of three months’ average trading profits.
This however is capped at £7,500.
If the turnover is down by less than 30 percent, they’ll get a grant covering 30 percent of trading profits, capped at £2,850.