Chancellor Rishi Sunak confirmed that further grants will be offered under the Self-employed Income Support Scheme.
The scheme will continue until September with a fourth and fifth grant. These will take into account submitted 2019-20 tax returns. Even if you were unable to claim the previous grants you may still be able to make a claim. Your tax return should have been submitted by 2nd March 2021 be eligible for the fourth and fifth grants.
The fourth SEISS grant
The fourth SEISS grant will be taxable, capped at £7500 and it is calculated at 80% of three months average trading profits. It will be paid in a single payment and it is based on an average of your trading profits for up to four tax years between 2016 to 2020.
The fourth grant will be available to claim from late April!
To be eligible for the fourth grant your trading profits must be no more than £50,000 and at least equal to non-trading income. You must have been financially impacted by coronavirus between February 2021 and April 2021.
Because this new calculation has taken the tax year 2019-20, your claim for the grant may be higher or lower than previously claimed SEISS grants.
HMRC will protect the SEISS from fraud with eligibility checks including writing to customers to inform them of a call to ask for proof of identity and evidence of trade. They will use the contact details held on your record.
To find out more about the scheme, search 'Self Employed Income Support Scheme' on GOV.UK.
How to claim the fourth SEISS grant
In mid-April, you will be given a personal claim date from HMRC, this will confirm the earliest date you can make a claim.
The claims service will be live from late-April to allow time to process submitted 2019-20 Self Assessment tax returns. The claim must be made by 31st May 2021 at the latest.
You will be required to make a clean and honest assessment that shows a significant reduction in trading profits. Whether this due to inability to trade or reduced demand, a record should be kept as evidence.
The fifth SEISS grant
The fifth SEISS grant will cover periods from May to September 2021. The amount you can claim will be determined by how much your turnover has been reduced.
For those with a higher reduction in turnover (30% or more), the grant will be capped at £7500 and it is worth 80% of three months of average trading profits.
For those with a lower reduction in turnover, the grant will be worth 30% of three months average trading profits. Further guidance will be released by HMRC at a later date.
The fifth grant will be available to claim from late July!
What can you do to prepare?
If you want to claim the fourth and fifth SEISS grants, there are several things you can do to prepare.
Ensure you have the following information:
- National Insurance number
- Self-Assessment Unique Taxpayer Reference (UTR)
- Government Gateway user ID and password
- Bank account number and sort code
If you are claiming the SEISS for the first time, you will be asked additional questions to prove your identity. You should prepare by having the following documentation in place.
- UK passport
- Credit file (such as loans, credit cards or mortgages)
- Self-Assessment tax return (within the last 3 years)
- Driving licence (DVLA UK or DVA NI)
- Tax credit claim
- P60
- Three most recent payslips
Is there other support available?
The Government is offering additional support for those impacted by Coronavirus, you may be eligible for the following support schemes:
- Bounce back loans
- Tax deferrals
- Rental support
- Increased universal credit
- Mortgage holidays
- Other business support grants
To find out more, search on GOV.UK.