Correspondence

Treasury Direction made under Sections 71 and 76 of the Coronavirus Act 2020 (November 2020)

Updated 28 July 2021

This was published under the 2019 to 2022 Johnson Conservative government

The Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Self-Employment Income Support Scheme Grant Extension 3) Direction

The Treasury, in exercise of the powers conferred by sections 71 and 76 of the Coronavirus Act 2020, give the following direction:

1.This direction applies to Her Majesty’s Revenue and Customs.

2.This direction modifies and extends the effect of the Self-Employment Income Support Scheme (as modified and extended by the Self-Employment Income Support Scheme Extension) which confers responsibility on Her Majesty’s Revenue and Customs for the payment and management of amounts to be paid under that scheme which is set out in the Schedule to the SEISS direction and the SEISS Extension direction.

3.The SEISS direction and SEISS Extension direction continue to have effect but are modified and extended so that the scheme to which they relate takes effect as modified and extended as set out in the Schedule to this direction.

4.This direction has effect for the duration of the scheme.

5.In this direction-

(a) “the SEISS direction” is the direction given on 30 April 2020 in exercise of the powers conferred by sections 71 and 76 of the Coronavirus Act 2020;

(b) “the SEISS Extension direction” is the direction given on 1 July 2020 in exercise of those powers.

Signed by the Chancellor of the Exchequer

[Signature]

Her Majesty’s Treasury 21 November 2020

Schedule

THE SELF-EMPLOYMENT INCOME SUPPORT SCHEME GRANT EXTENSION 3

Introduction

1.This Schedule modifies and extends the Self-Employment Income Support Scheme (“SEISS”) (as modified and extended by the Self-Employment Income Support Scheme Extension) and is to be known as the Self-Employment Income Support Scheme Grant Extension 3 (“SEISS 3”).

Purpose of scheme modification and extension

2.The purpose of the modification and extension to SEISS is to provide for payments to be made to persons and relevant persons carrying on a trade the business activity or capacity of which, or demand for which, has been reduced, or cannot be carried on, due to the health, social and economic emergency in the United Kingdom resulting from coronavirus and coronavirus disease in the period beginning on 1 November 2020 and ending on 29 January 2021.

Application of SEISS and SEISS Extension

3.SEISS 3 is a modification and extension of SEISS and accordingly all the provisions of SEISS and SEISS Extension apply to this extension as they apply in relation to SEISS and SEISS Extension and payments under SEISS and SEISS Extension.

Claims

4.1. A claim for a payment under SEISS 3 (a “SEISS 3 payment”) must be made in accordance with paragraph 3 of SEISS on or before 29 January 2021.

4.2. Subject to paragraph 4.3, a claim may only be made for a SEISS 3 payment in respect of the period beginning on 1 November 2020 and ending on 29 January 2021 (“the qualifying period”) in relation to a trade—

(a)the business of which has suffered reduced activity, capacity or demand in that period from that which could reasonably have been expected but for the adverse effect on the business of coronavirus or coronavirus disease, and

(b)which the claimant reasonably believes will suffer a significant reduction in trading profits for a relevant basis period from that which would otherwise have reasonably been expected as a result of that reduced activity, capacity or demand.

4.3. A claim cannot be made under paragraph 4.2 in relation to any reduced activity, capacity or demand caused solely because the person is required to self-isolate, or care for a person required to self-isolate, as a result of travelling to the United Kingdom.

4.4. On a claim by a relevant person, paragraphs 7 (profits condition) and 9 (relevant income for relevant reservists) of SEISS Extension apply in determining whether the person is a qualifying person for the purposes of the claim.

4.5. For the purposes of paragraph 4.2—

“relevant basis period” means a basis period or basis periods in which the qualifying period falls;

“basis period” has the same meaning as in Chapter 15 of Part 2 of ITTOIA 2005.

SEISS 3 payment

5.1 The amount of the SEISS 3 payment is the lower of— (a) £7,500, and (b) 3×(TP/12×80%).

5.2. In paragraph 5.1, TP is—

(a) except where the person is subject to the loan charge or is a relevant person, determined by the first to apply of the following paragraphs—

(i) if the person carried on a trade in the tax years 2016-17, 2017-18 and 2018-19, the average trading profits of those tax years,

(ii) if the person did not carry on a trade in the tax year 2016-17, the average trading profits of the tax years 2017-18 and 2018-19, and

(iii) if the person did not carry on a trade in the tax year 2017-18, the trading profits of the tax year 2018-19,

(b) where the person is subject to the loan charge or is a relevant person—

(i) the average trading profits of the tax years 2016-17 and 2017-18, or

(ii) if the person did not carry on a trade in the tax year 2016-17, the trading profits of the tax year 2017-18, or

(c) where the person is a relevant reservist and did not carry on a trade in the tax year 2017-18, the trading profits of the tax year 2018-19.

Interpretation

6.1. Terms used in this Schedule have the same meaning as in SEISS and SEISS Extension.

6.2. For the purposes of SEISS and SEISS 3—

“SEISS” means the Self-Employment Income Support Scheme set out in the Schedule to the direction given by the Treasury to HMRC on 30 April 2020 in exercise of the powers conferred by sections 71 and 76 of the Coronavirus Act 2020 as modified and extended by the SEISS Extension;

“SEISS Extension” means the Self-Employment Income Support Scheme Extension set out in the Schedule to the direction given by the Treasury to HMRC on 1 July 2020 in exercise of the powers conferred by sections 71 and 76 of the Coronavirus Act 2020;

“SEISS 3” means the Self-Employment Income Support Scheme Grant Extension 3;

“SEISS 3 payment” has the meaning given in paragraph 4.1.