Fourth and Fifth Self Employed Income Support Scheme (SEISS)
Included in the Budget, presented by the Chancellor Rishi Sunak on 3 March 2021, was the confirmation that there will be a fourth and fifth grant available to self-employed traders. These grants will also become available to those that have been self-employed and submitted a self-assessment tax return in the 2019/2020 tax year.
WHAT ARE THE REQUIREMENTS TO BE ELIGIBILE FOR THE GRANT?
To be eligible for the upcoming grant, as a minimum you must:
- Have submitted your 2019/2020 tax return by Tuesday 2 March 2021,
- Have self-employed profits of no more than £50,000 and be equal or more than your non-trading income,
- Continue trading into 2020/2021 tax year,
- Be currently trading and impacted by reduced demand due to Covid OR have been trading but temporarily unable to do so due to Covid.
- Declare on the application that you intend to continue to trade or reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity or demand.
If you do not meet the profit requirement in requirement 2. HMRC will look at the previous 3 tax years to assess eligibility.
HOW MUCH IS THE GRANT?
The fourth grant will be 80% of the 3-month average trading profits, capped at £7,500.
The fifth grant will be either 80% or 30% of the 3-month average trading profits, HMRC will look at turnover reduction in the period between April 2020 and April 2021 to decide the level of the grant. A turnover reduction of 30% or more will result in the 80% grant, whereas less than 30% will mean a 30% grant awarded.
Further detail on grant 5 is expected to follow.
WHEN IS THE GRANT AVAILABLE?
The fourth grant will be available in late April 2021 until 31 May 2021, with the fifth and final grant available from late July 2021.
WHERE CAN I FIND OUT MORE?
There is more detailed expected in due course, further updates are expected on the Gov website by clicking here,
HMRC will also contact eligible self-employed individuals in mid-April before the fourth grant application opens.
If you have any queries regarding eligibility or how to apply for the grants, please do not hesitate to contact us on 01462 459 090.