25 Nov 2020
Applicants for the third Self-employment Income Support Scheme (SEISS) grant will face a new test as the government tightens eligibility criteria, warns the Institute of Chartered Accountants in England and Wales (ICAEW).
The guidance for the third SEISS grant has been published ready for the portal to open for claims on 30 November.
To qualify for SEISS grants, businesses must be adversely affected due to the coronavirus (COVID-19). They must either be currently trading but be impacted by reduced demand, or have been trading but be temporarily unable to do so due to COVID-19.
The latest guidance on checking if you can claim a grant and new guidance on how trading conditions affect eligibility include an additional test. This requires the claimant to intend to continue to trade and reasonably believe there will be a significant reduction in their trading profits due to reduced activity, capacity or demand or inability to trade due to COVID-19.
The ICAEW said: 'For many taxpayers, for example those that use a 31 March or 5 April accounting date, the significant reduction of trading profits will be expected to appear in the results they report on their 2020/21 tax return. However, some taxpayers, for example those that use a 30 April accounting date, will not report the trading results for the relevant period until their 2021/22 tax return.'
Claimants can check their eligibility for the SEISS here.