The third SEISS grant works in much the same way as the previous two. However, there is an additional condition (over and above the ones applying to the first two grants) which is that the self-employment activity must have been significantly impacted by coronavirus.
HMRC’s view of this that businesses must:
- Declare that they intend to continue to trade, or restart trading, and that they reasonably believe that the impact on their business will cause a significant reduction in their trading profits
- Only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not make a business eligible for the third SEISS grant.
When deciding whether the reduction is significant, customers will need to consider their wider business circumstances.
We expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period.
Their business must have been impacted on or after 1 November 2020. Customers must keep evidence that shows how their business has been impacted by coronavirus, resulting in reduced activity, capacity or demand, or a temporary inability to trade.
This is a subjective judgement, so you will need to make your own mind up and document your reasons. Bear in mind that HMRC are undertaking checks of SEISS claims, and can demand repayment of the grants (potentially with interest and penalties on top) if they are not satisfied that you qualified.
If we can be of any further assistance, please contact us .