Universal Credit: Payments may be reduced by SEISS grants as a deadline falls this month | Personal Finance | Finance

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Universal Credit payments are based on a claimant’s specific circumstances. To be eligible for the support a person must be on a low income or out of work, aged between 18 and state pension age, have less than £16,000 in savings and be living in the UK.

Self-employed Universal Credit claimants must usually report how much income they’re receiving from their business, even if no money has been made.

This includes income from SEISS grants, which is important to note as a deadline for the scheme is quickly approaching.

The third set of grants, which can be worth up to 80 percent of profits capped at £7,500, must be claimed for by January 29.

To be eligible for these grants, claimants must have traded throughout the 2018 to 2020 tax years and have seen their trading impacted by coronavirus.

The grants themselves do not need to be repaid but they will be subject to income tax and self-employed National Insurance.

Recipients must also declare that they intend to continue to trade in the future and they reasonably believe there will be a significant reduction in their trading profits going forward.

To work out eligibility, HMRC will first look at the claimants 2018 to 2019 tax returns and their trading profits must be no more than £50,000.

If a claimant is not eligible based on this trading year, the government will then look into the 2016 to 2017 and 2017 to 2018 tax years.





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