You may have already received an email from HMRC about the fifth SEISS grant that will be available to apply for later this month. You may feel that business is on the up, but could this extra bit of money could really help the business? Maybe business is down, but not as badly as it was? So, should you apply for the fifth SEISS grant?
The criteria to be eligible for this grant is pretty much the same as the fourth grant. Your self-employed profits, for 2019 / 2020 need to be lower than £50,000 and they cannot exceed 50% of your total income. Alternatively, the same £50,000 and 50% tests can be applied against your average profits and total income over the four fiscal years up until 2019 / 2020.
You don’t need to have applied for the previous four grants to be able to apply for the fifth SEISS grant. However, you will be required to confirm that your business has continued to be negatively adversely affected by Covid-19.
The amount that you can claim with the grant, depends on how much your turnover has been affected by. If business has been affected and reduced your sales by more than 30% then the grant will be 80% of the average profits of the business. However, this is capped at £7,500.
If your business has been affected negatively by less than 30% then the grant will cover 30% of your average profits. This will be capped at £2,850.
If you are not sure if you should apply for the fifth SEISS grant, then why not call our team of local accountants. Applying for this grant should only be done if you have noticed that business has been significantly down on previous months or years.
It is important to note that acceptance of this grant could make applying for a mortgage or other funding harder in the future and do not overlook that the SEISS grants that you have applied for will also be included in your next accounts and will be part of your taxable income. HMRC may seek a repayment of all or part of the SEISS grants if they assess that you did not meet eligibility at the time you claim each tranche of funding, and may therefore need to be repaid at a later date.
Here at AK Bookkeeping we are here to help you. If you are self-employed and not sure if you should apply for the fifth and final grant, let’s have a chat. We can talk through the pros and cons of applying for the grant and look at other finance options too.
For more information contact our friendly accountants now; we are here to help.