Applications for the third tranche of the SEISS have opened, claims must be submitted by 29th January 2021.

The requirements for the first two grants remain in place, therefore anyone not eligible for these won’t be eligible for the third tranche. In addition, the requirements for claiming that the business has been impacted by the pandemic have been tightened.

To make a successful claim, a confirmation must be made that between the 1st November 2020 and 29th January 2021, the business was either:

  • Trading but impacted by reduced demand as a result of the Coronavirus; or
  • Previously trading but temporarily unable to do so

With regard to the point “Previously trading but temporarily unable to do so”, this can be a result of:

  • Government restrictions
  • being instructed to shield or self-isolate in-line with NHS guidelines and unable to work from home (self-isolating after foreign travel does not count)
  • testing positive for Coronavirus and unable to work from home
  • unable to work due to caring responsibilities (such as the closure of school)

The claimant must also confirm that:

  • They intend to continue trading post pandemic; and
  • They have a reasonable belief that there will be a significant reduction in trading profits for the tax year in which the profits are reported

This must be determined based on the wider business circumstances for the whole of the tax year, including, for example, increased profits from the “Eat Out to Help Out” scheme.

Evidence must be retained to support the claim. This should include:

  • Grant claim reference
  • Amount claimed

If claiming for reduced activity the claimant must be able to evidence:

  • Accounts showing reduced activity compared to the previous year
  • Records of reduced or cancelled contracts or appointments
  • Evidence that alternative contracts or appointments were sought
  • Fewer invoices
  • Dates when there was reduced demand or capacity due to Government enforced restrictions

If claiming for business closure the claimant must be able to evidence:

  • Dates closed due to Government enforced restrictions
  • NHS communications relating to self-isolation or shielding
  • Test results for a positive coronavirus test
  • Communication from childcare facilities that they will be closed

With regard to reduced demand, this can be due to:

  • Fewer customers than normally expected due to social distancing or Government restrictions.
  • Contracts been cancelled and not replaced
  • Carrying out less work due to supply chain disruption

Claims cannot be made based on increased costs such as the purchasing of PPE and cleaning supplies.

A number of Government examples have been provided for the SEISS:

  • A café owner who has a drop in takings due to restrictions on households mixing can claim. However, if the café increases its prices so there will be no overall fall in profits, then a claim cannot be made.
  • A plasterer can claim if disruption in the supply chains results in a fall in the amount done reducing the trading profits. However, if supplies can be re-sourced without a significant impact on profits, then a claim cannot be made.
  • A trainer who works in a gym that is closed and so suffers reduced demand and lower profits can claim.
  • A builder informed by NHS to stay at home as he is clinically extremely vulnerable resulting in a reduction in business profits can claim. However, if they are able to rearrange contracts so there is no reduction in profits they cannot claim.
  • A hairdresser who closes the salon for 2 days for a deep clean but doesn’t believe this will impact overall profits cannot claim.
  • An electrician for whom the only impact is having to buy PPE cannot claim as there is no reduction in demand.

Useful Links

More information can be found HERE.

You can start your claim HERE.