We have had a number of our self-employed, sole trader clients get in touch to ask about the last tranche of money from the government's SEISS grants. The grant is taxable and will be paid out in a single instalment. Guidance about claiming the grant will be available from early July 2021. According to the government website, it's payable at two levels, depending on your turnover in the last (2020-21) financial year.
Essentially, if your turnover is down by over 30% then you are in line for a payment of £7,500. However, if your turnover is down by less than 30% then this payment falls to £2,850. Full details of the criteria are available at this link. The question we have been asked though is, "does my turnover figure have to include the other SEISS grants I have been paid to date?"
Clearly, if you have claimed all these grants then you will have received a five-figure sum in the last tax year, which could have a big impact on the actual turnover recorded. The good news it that you do NOT have to include the previous grants in your turnover figure in order to claim the maximum final grant. In other words, you just include all your actual turnover, excluding any earlier government grants.
If you are unsure of any of this, please don't hesitate to get in touch with us.
Vivian Linstrom, M&S Accountancy and Taxation.