The third SEISS claim is now open. HM Revenue & Customs have already begun to send emails with specific dates of when they can submit their claim.
To make a claim, individuals must have been impacted by the coronavirus on or after 1 November 2020. It is possible to make a claim even if the claimant did not submit a claim for the first or second grant.
To be eligible for the third grant, claimants must have traded in both 2018/19 and 2019/20 tax years and must either:-
– be currently trading but are impacted by reduced demand due to coronavirus;
– have been trading but are temporarily unable to do so due to coronavirus.
The claimant must also declare that they:-
– intend to continue to trade;
– reasonably believe there will be a significant reduction in their trading profits due to reduced demand or their inability to trade.
Like the first two grants trading profits must be no more than £50,000 and at least equal to non-trading profits according to a the claimant’s 2018 to 2019 tax return.
It is very important to bear in mind the phrase ‘reduced demand’ as this is an alternation from ‘adversely affected’ from the first two grant, and could affect eligibility.
Impacted by reduced demand – HM Revenue & Customs state that this applies to a business if it has been impacted by reduced demand, activity or capacity due to coronavirus. For example, if claimants:
– have fewer customers or clients than they would normally expect, resulting in reduced activity due to social distancing or government restrictions;
– have one or more contracts that have been cancelled and not replaced;
– carried out less work due to supply chain disruptions.
HM Revenue & Customs have made it clear that “people must not claim if the only impact on their business is increased costs” such as purchasing face masks or cleaning supplies.
If eligible to make a claim, like the first grant claimants can claim up to 80% of average monthly trading profits over the course of three months, capped at £7,500.