The online claims portal for the third self-employed income support scheme (SEISS.3) grant opened on 30 November.
If you qualify for the grant you should receive a lump sum payment covering the three months from 1 November 2020. You have until 29 January 2021 to submit your claim.
The grant is calculated as 80% of your average trading profits as reported on your tax returns for the years 2016-17 to 2018-19, capped at £2,500 per month. It is treated as taxable income of your business and must be reported on your 2020-21 tax return.
On the application you will be asked to confirm that your business is currently trading; or has been trading and is temporarily closed due to Covid-19 and that you intend to continue trading when the restrictions are lifted. You will also need to declare that your business has been impacted by reduced demand between 1 November 2020 and 31 January 2021, which will cause a significant reduction in trading profits for the accounting year 2020-21.
This means that to qualify for the SEISS.3 grant your sales income should be markedly reduced, leading to a drop in profits. This reduction could be due to a range of factors including fewer customers or contracts or problems with supplies. A reduction in sales due to sickness of the business owners or workers could also qualify.
