Self-Employment Income Support Scheme fourth grant

Find out if you’re eligible for the fourth grant which will cover the period February 2021 to April 2021. Also find out information about the fifth grant.

The Budget confirmed that the fourth SEISS grant will be set at 80% of 3 months’ average trading profits, paid out in a single instalment, capped at £7,500.

The fourth grant will take into account 2019 to 2020 tax returns and will be open to those who became self-employed in tax year 2019 to 2020. The rest of the eligibility criteria remain unchanged.

Eligibility is based on the submitted 2019 to 2020 tax return.

1. Who can claim

A self-employed individual or a member of a partnership.

Looking at the 2019 to 2020 Self Assessment tax return, trading profits must be no more than £50,000 and at least equal to your non-trading income.

If not eligible based on the 2019 to 2020 Self Assessment tax return, HMRC will then look at tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.

Must have traded in both tax years:

  • 2019 to 2020 and submitted your tax return by 2 March 2021
  • 2020 to 2021

Must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus

Must also declare:

  • Intention to continue to trade
  • reasonably believe there will be a significant reduction in trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus

2. What the fourth grant covers

The fourth grant is a taxable grant calculated at 80% of 3 months’ average trading profits. The fourth grant will be paid out in a single instalment and capped at £7,500 in total.

3. How to claim

The online claims service for the fourth grant will be available from late April 2021 until 31st May 2021.

HMRC will contact those eligible in mid-April to give a personal claim date. This will be the date to make a claim from.

4. Further support

There will be a fifth grant covering May to September claimable from late July if eligible. The amount will be determined by how much turnover has been reduced in the year April 2020 to April 2021.

The fifth grant will be worth:

  • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
  • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

PAYadvice.UK 31/3/2021

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