SEISS 5th grant is different to its predecessors. Here’s how:

The fifth Self Employed Income Support Scheme (SEISS) Grant will be available from the end of July, with the criteria for applications the same as the fourth grant. However, the level of grant awarded this time depends on whether your turnover has fallen by more or less than 30%.

For a turnover that has dropped by 30% or more, the grant is calculated at 80% of the three months’ trading profits, capped at £7,500. And for a turnover that has fallen by less than 30%, the grant will be based on 30% of three months’ trading profits, capped at £2,850.

HMRC expects that your business will be impacted by COVID-19 between May and September 2021 in order to claim the fifth SEISS grant. Claims must be made before 30 September 2021.

Confused already? HMRC has produced this guide to working out your turnover and the other eligibility criteria that must be met.

Government Guidance

Clued up on Self Employed Income Support Scheme (SEISS) Grants?

Have you taken full advantage of the government’s SEISS grants during the pandemic? They may have been heavily criticised for not being available to all self-employed people but they were certainly a lifeline for many during extremely testing times.

In the March 2021 Budget, the government announced details of the fourth and fifth SEISS instalments. From this month, it is possible to claim for the fourth grant (covering February to April 2021) but there are significantly different criteria for this and the fifth instalment (covering May to September 2021).

If you weren’t able to apply for the first three SEISS grants, you may now be eligible, so it’s worth reading this comprehensive article from Sage with all the details of the grant criteria. Make sure you’re claiming what is available if it will help to get your business back on its feet post-COVID.

Find out more:

SEISS: What you must do to claim the fourth and fifth Self Employed Income Support Scheme grants | Sage Advice United Kingdom

Top tax planning tips for individuals

Are you making the most of tax reliefs and allowances to make your personal tax as efficient as possible? We outline areas for consideration here:

Inheritance Tax & Capital Gains Tax planning
It’s never too soon to distribute assets and minimise IHT. Transfer items that are IHT-exempt and remember your deeds of variation. Assets transferred to a spouse are CGT-exempt and transferring into joint names is tax efficient.

Personal allowance
Additional rate taxpayers making personal pension contributions, salary sacrifice and gift aid donations preserve their personal allowance and reduce additional rate tax paid. Income tax reductions can be made by investing through tax efficient schemes. 

Make the most of a spouse’s tax allowance if you are a higher rate payer and plan carefully for your jointly owned property income.  

It may be worth claiming tax credits, especially if self-employed. Plus, child benefit for those earning over £50,000 must be repaid, so utilise gift aid donations and pension contributions.

Don’t fall foul of the statutory residence test and elect just one of your properties as your main residence. 

Want to find out more? Read our full article here. 

Top tax planning tips for businesses

Are you making the most of tax reliefs and allowances to make your business as tax efficient as possible? We outline areas for consideration:

Business structuring for tax efficiency

The decision to have a Limited Company, LLP, Partnership or Sole Trader has commercial and tax implications for your business. It is also wise to manage your succession planning to avoid costly pitfalls. Adapt your expenses claims and dividends to achieve maximum cash flow advantages and consider two Enterprise Investment Schemes that offer ways to raise finance.

Employee taxation

Are you making the most of pension contributions for employees and have you considered tax-efficient share option schemes?

Allowances and Reliefs

Make sure you’re up to speed on Capital Allowances, Business Property Relief, Entrepreneurs’ Relief, Loss Relief and Research & Development Tax Credits that may be relevant for your business.

Want to find out more? Read our full article here. 

Budget Day – Wednesday 3 March

Rishi Sunak, Chancellor of the Exchequer, delivered the government’s Budget for 2021. Key measures for employers are summarised below and more information about Budget 2021 measures can be found here.

COVID-19 support

Coronavirus Job Retention Scheme (CJRS) extension:

  • 80% of employees’ usual wages will be paid (capped at £2,500 p/m) for hours not worked, until 30 June 2021
  • In July, 70% of usual wages for the hours not worked will be paid (£2,187.50 p/m cap)
  • In August and September, 60% of usual wages (£1,875 p/m cap) will be paid
  • Employers to pay furloughed employees at least 80% of their usual wages for the hours they do not work, capped at £2,500 p/m, plus all National Insurance and pension contributions
  • Find out more about CJRS

More information.