The 3rd SEISS is for self-employed businesses that have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which will have a significant reduction in profits.
The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
Who is eligible?
- Those who were eligible for the 1st and 2nd grant
- Self-employed individuals (companies not eligible)
- Businesses that traded in tax years 2018/19 and 2019/20
- Businesses that are currently trading or have been trading but are unable to do so due to coronavirus
- Businesses that intend to continue to trade and believe there will be a significant reduction in trading profits
How to claim
Claim online through the portal. You will need your Self-Assessment Unique Taxpayer Reference (UTR), National Insurance number, Government Gateway user ID and password, UK bank details
Tax implications of taking the grant
The grant does not need to be repaid if you’re eligible but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self-Assessment tax return.
Other support available
- There will be a fourth grant covering February 2021 to April 2021.
- Mortgage payment holidays available for up to 6 months
- Payment holidays are available for consumer credit products such as personal loans and car finance.
Recap of existing economic support for businesses
- Reduced VAT for hospitality, accommodation and attractions until the end of March 2021
- Business rates relief for hospitality, retail, leisure and nurseries until the end of March 2021 in England
- Extensive tax deferrals for general tax, VAT and Income Tax Self-Assessment