SEISS grant applicants to face new test
27th November 2020
Applicants for the third self-employment income support scheme (SEISS) will be issued with a new test as the Government tightens its eligibility criteria.
New guidance for the scheme has been published ahead of the portal opening for claims on 30 November.
To qualify for the SEISS grant, applicants must either be currently trading and affected by reduced demand, or temporarily unable to trade as a result of the coronavirus pandemic.
The latest guidance on checking if businesses can claim a grant includes an additional test. This requires the business to intend to continue to trade and reasonably believe there will be a significant reduction in its trading profits.
In a guidance page on the new rule, the Institute of Chartered Accountants in England and Wales 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.”
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