SEISS the Fourth Grant
The Self-Employed Income Support Scheme (SEISS) Fourth Grant
The Self-Employed Income Support Scheme (SEISS) was introduced to assist sole traders and those in a partnership who had been adversely affected by Covid-19.
Will I be able to claim?
The SEISS fourth grant will be available to those that are self-employed or members of a partnership. To be eligible you must have traded in the 2019/20 tax year and submitted your return by the 2nd March 2021. You must also have traded in the 2020/21 tax year. This further extends the grant to those who began trading in the 2019/20 tax years who would not have been eligible to claim the previous SEISS grants.
Your 2019/20 trading profits must be no more than £50,000 and at least equal to your non-trading income i.e., more than half of your income must result from trading profits. If not eligible based on your 2019/20 tax return HMRC will then look back at 2016/17, 2017/18, 2018/19 tax returns.
You must also either be currently trading but be impacted by reduced demand due to coronavirus or have been trading but are temporarily unable to do so due to coronavirus.
To be able to make a claim you will also need to declare that you:
- Intend to continue to trade
- 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
When will I be able to claim?
HMRC are yet to confirm an exact date for when people will be able to claim the fourth grant however they have said that the online claims service will be available from late April 2021 until 31st May 2021. HMRC will contact those that are eligible in mid-April to provide dates from which claims can be made.
How much can I claim?
The fourth SEISS grant will be a taxable grant worth 80% of 3 months average trading profits. It will be paid out in a single instalment, capped at £7,500 in total. This will be based on your submitted 2019/20 tax return.
Due to the fact that the fourth grant is based on the submitted 2019/20 tax returns, it is likely that the amount of the fourth grant will be different for many people than the previous grants.
Will this be the final grant?
It was announced in the budget that there will also be a further fifth SEISS grant covering the period May 2021-September 2021. Claims for this grant will be able to be made from late July.
In contrast to the previous grants, the fifth grant will be based on how much your turnover has been reduced in the year April 2020 to April 2021.
The fifth grant will be:
- 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%
There is more information on the fifth grant still to be announced.
If you need help applying for the new SEISS grant or need a few more questions answered, we are here to help please get in contact.
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Never call an accountant a credit to his profession; a good accountant is a debit to his profession.
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