The UK Government has announced that the Self-Employment Income Support Scheme (SEISS) will continue until September with a fourth and fifth grant.
The fourth and fifth grants will take into account submitted 2019-20 tax returns. This means you may be able to claim, even if you were not eligible for previous grants. You must have submitted your 2019-20 tax returns by 2 March 2021 to be eligible for the fourth and fifth grants.
The value of the grant is based on an average of trading profits for up to 4 tax years between 2016 to 2020, where available.
Fourth SEISS grant
The UK Government will pay a taxable grant which is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant is based on an average of your trading profits for up to four tax years between 2016 to 2020, where available.
The grant will be available to claim from late April. As with previous grants, trading profits must be no more than £50,000 and at least equal to non-trading income in order to claim the fourth SEISS grant.
Eligibility for the fourth SEISS grant will also depend on whether you experienced a significant financial impact from coronavirus between February 2021 and April 2021.
As the calculation now takes into account the tax year 2019-20, those who previously claimed SEISS grants may receive grants that are higher or lower in value than any previous SEISS payments they received.
How you can claim the fourth SEISS grant
From mid-April, you will be given their personal claim date by HMRC which confirms the earliest date you can claim. Claim dates are spread across different days to ensure the system is fast and easy to use.
The online claims service for the fourth grant will be live from late April. This is to allow HMRC time to process recently submitted 2019-20 Self Assessment tax returns.
You must make their claim for the fourth grant between their personal claim date and 31 May 2021 at the latest.
You will need to make an honest assessment that there has been a significant reduction in trading profits due to reduced demand or their inability to trade, and to keep appropriate records as evidence.
The UK Government has also announced that there will be a fifth and final SEISS grant covering May to September. The amount of the fifth grant will be determined by how much your turnover has been reduced.
The grant will be worth 80% of three months’ average trading profits, capped at £7,500, for those with a higher reduction in turnover (30% or more). For those with a lower reduction in turnover, of less than 30%, then the grant will be worth 30% of three months average trading profits.
You will be able to claim the fifth grant from late July if you are eligible. Further details will be provided on the fifth grant in due course.
Information provided by Jim Harra Chief Executive and First Permanent Secretary – HMRC
You can find our Covid-19 Toolkit for small businesses here http://www.sapphirebusinessservices.co.uk/wp/covid-19/