Self-Employment Income Support Scheme – Third Grant
HMRC have announced that the rules on who is eligible to claim have changed.
The third grant, which offers 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, will be available covering the period from 1 November 2020 to 29 January 2021. Self-employed people who are eligible and in need of support will be able to claim the third grant at any time from 30 November 2020 to 29 January 2021.
Additional, tighter, eligibility criteria have been introduced for the third grant.
To be eligible for the third grant, taxpayers must meet the eligibility criteria for the first and second grants and also:
- experience reduced activity, capacity or demand or be temporarily unable to trade in the period from 1 November 2020 to 29 January 2021, compared with what could reasonably have been expected but for the adverse effect on the business of coronavirus, and
- the claimant reasonably believes the impact will cause a significant reduction in trading profits for the relevant accounting period, compared with what would otherwise have reasonably been expected as a result of that reduced activity, capacity or demand
HMRC has specifically said that a reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.
No claim can be made where the reduced activity, capacity or demand is caused solely because the person is required to self-isolate, or care for a person required to self-isolate, as a result of travelling to the UK.
The eligibility criteria may be revised further for the fourth grant.