• Sally Charlesworth

SEISS 5 - Eligibility Issues


SEISS 5 introduces a turnover test, on top of the business impact tests to establish the level of grant to be received.


Business Impact Test


As with SEISS 4, in order to be eligible for SEISS 5, you need to be able to demonstrate that:


  • at the time the claim is made, there has been a reduction in expected demand from May 21 - Sept 21

and

  • you anticipate a significant reduction in trading profits for that whole trading year.


It is highly recommended that the basis used to make this decisions is retained by the claimant, so that in the event of a query by HMRC the claim can be justified.


Turnover Test


The turnover test is slightly more complicated.


If your year-end falls between 31st March - 5th April, it should be a straight forward comparison between the 12 month pre-Covid period ended 2020 and 2021.


However, if your year-end falls outside of this period, you will need to apportion the turnover from two years, to get the 12 months covering the pandemic period (starting between 1st April 2020 - 6th April 2020) and compare this with your last pre-pandemic tax return turnover - note - you will not be comparing the same months, and you may wish to enlist the help from your accountant to ensure you get the calculation correct.


Again it is highly recommended that the evidence you use to make the decision is retained.


Level Received


If your turnover comparison shows a drop greater than 30% you will receive the full 80% grant, otherwise you will receive 30% (assuming you are eligible based on the business impact test).

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