At the 2021 Budget, it was confirmed that the fourth SEISS grant will be set at 80% of three months’ average trading profits. This is paid out in a single instalment and capped at £7,500. It will cover the period from February 2021 to April 2021.
To be eligible for the fourth grant, self-employed workers must have filed their 2019/20 tax return by midnight on 2nd March 2021. This includes those who became self-employed in 2019/20, provided they have filed according to the deadline.
Eligibility will be based on the 2019/20 self-assessment tax return, which may affect the amount of the fourth grant. This could be higher or lower than previous grants.
The remaining eligibility criteria are unchanged. Therefore, applicants must either be currently trading, but impacted by reduced demand. Applicants may also be temporarily unable to trade due to COVID-19. They must also declare an intention to continue trading.
Claims can be made from late April until 31st May 2021.
The fifth SEISS grant will cover the period from May to September 2021. It will also be available from July 2021. This will be set at 80% of three months’ average trading profits and is paid out in a single instalment. Again, this is capped at £7,500, for those with a turnover reduction of 30% or more.
Alternatively, it will be worth 30% of three months’ average trading profits. This is capped at £2,850 for those with a turnover reduction of less than 30%.
Further details of the fifth grant will be provided in due course.
Danielle Harvey ACA, of Harvey, Telford & Bates comments on the final grants for the self-employed:
“These final two grants continue to provide financial aid following the pandemic’s effect to the economy. The various criteria and deadlines for both grants can appear quite diverse and daunting. But at HTB, we are on hand to help support you. We can guide you through the process to help you benefit from the grants.”
For guidance, support and more information, you can get in touch with us. You can contact us on 01743 462604 or email us at email@example.com to schedule an appointment or speak to one of our team.
To view this publication from HMRC please click here