Coronavirus: Self-Employment Income Support Scheme - fourth grant
The fourth Self-Employment Income Support Scheme (SEISS) grant has been outlined as part of Budget 2021. This grant will support self-employed workers affected by coronavirus restrictions for the period February 2021 until April 2021.
The fourth SEISS grant will be set at 80 per cent of three months' average trading profits, paid out in a single instalment, capped at £7,500. It 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.
Your eligibility for the scheme will now be based on your submitted 2019 to 2020 tax return. This may also affect the amount of the fourth grant which could be higher or lower than previous grants you may have received.
Who can claim
To be eligible for the fourth grant you must be a self-employed individual or a member of a partnership.
To work out your eligibility, the HMRC will first look at your 2019 to 2020 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you're not eligible based on your 2019 to 2020 Self Assessment tax return, the HMRC will also look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 as well as 2019 to 2020.
You must also have traded in both tax years:
- 2019 to 2020 and submitted your tax return by 2 March 2021
- 2020 to 2021
You 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
You must also declare that:
- you intend to continue to trade
- you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus
What the fourth grant covers
The fourth grant will provide a taxable grant calculated at 80 per cent of three months' average trading profits. The fourth grant will be paid out in a single instalment and capped at £7,500 in total.
How to claim
To allow HMRC to process recently submitted 2019 to 2020 Self Assessment tax returns, the online claims service for the fourth grant will be available from late April 2021 until 31 May 2021.
If you are eligible, HMRC will contact you in mid-April to give you your personal claim date. This will be the date that you can make your claim from.
There will be more guidance about the fourth grant in due course.
The UK government has also announced that there will be a fifth and final grant covering May to September. You will be able to claim from late July if you are eligible for the fifth grant.
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
The fifth grant will be worth:
- 80 per cent of three months' average trading profits, capped at £7,500, for those with a turnover reduction of 30 per cent or more
- 30 per cent of three months' average trading profits, capped at £2,850, for those with a turnover reduction of less than 30 per cent
Further details will be provided on the fifth grant in due course.
First published 3 March 2021