New advice for construction industry scheme workers claiming fifth SEISS grant

Subcontractors in the construction industry scheme (CIS) should include the full amount they earn before any deductions are made by contractors when calculating turnover for the fifth Self Employment Income Support Scheme (SEISS) grant, HM Revenue & Customs (HMRC) has confirmed.

The guidance comes after the new “turnover test” caused confusion among self-employed construction workers.

If you are claiming the fifth SEISS grant, here’s what you need to know.

What is the Self Employment Income Support Scheme?

Launched in response to the coronavirus pandemic, the SEISS is designed to supplement the income of self-employed workers who have been impacted by Covid-19 disruption.

How much can I get?

Unlike previous grants, you now need to tell HMRC about your business turnover to calculate the level of grant you are entitled to:

  • For workers who have lost more than 30 per cent of their income, the fifth grant is equal to 80 per cent of three months’ average trading profits capped at £7,500.
  • For those who have lost less than 30 per cent, the grant is capped at 30 per cent of three months’ average trading profits, up to a maximum £2,850.

What is the turnover test?

You now need to tell the tax authority about your turnover, taking into account any revenue, fees, sales or money earned or received by your business.

You’ll need to work out turnover for:

  • April 2020 to April 2021; and
  • either 2019 to 2020 or 2018 to 2019

More guidance on the turnover test can be found here.

What is the latest advice for workers in the construction industry scheme?

According to HMRC, your turnover must include the “full amounts on your invoices, before any deductions contractors have made in the ‘CIS deductions’ field” when calculating your turnover for the pandemic year and the reference pre-pandemic period.

When is the deadline?

You must make your claim on or before 30 September 2021.

Get advice today

For help and advice with related matters, please get in touch with our team today.

Posted in Funding.