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HMRC fourth grants for self-employed available from late April 2021

HMRC has published details of the eligibility criteria of the final two grants available under the coronavirus (COVID-19) Self-employment Income Support Scheme (SEISS). If you are eligible, based on your tax returns, HMRC should contact you mid-April, and provide a date that you can make a claim from. This will arrive by email, letter or the HMRC online service.

In order to make a claim, you will need to confirm your eligibility criteria. The claim must be made on or before 1 June 2021.

At the 2021 Budget, the Chancellor confirmed that this fourth SEISS grant will be set at 80% of three months’ average trading profits. The grant will cover the period from February to April 2021 and be paid out in one instalment and capped at £7,500 for those with a turnover reduction of 30% or more. Alternately, it will be worth 30% of three months’ average trading profits, capped at £2,850 for those with a turnover reduction of less than 30%.

Only those self-employed workers who have filed their 2019/20 tax return by midnight on 2 March 2021 will be eligible to receive the fourth grant. This will also include those workers who became self-employed in 2019/20, provided they have filed by the deadline.

Eligibility will be based on the 2019/20 self-assessment tax return which may affect the amount of the fourth grant which could be higher or lower than previous grants.

The rest of the eligibility criteria remains unchanged in that applicants must either be currently trading but impacted by reduced business activity, capacity and demand, or be temporarily unable to trade due to COVID-19. You must keep evidence to that shows how your business has been impacted and make an honest assessment. Your trading profits must be no more than £50,000 and at least equal to or more than your non-trading income. You must also declare an intention to continue trading.

Claims can be made from late April until 31 May 2021.

A fifth SEISS grant will cover the period from May to September 2021 and guidance on this will be issued on the HMRC website in due course.

For more details please check out the details on www.gov.uk or, if you require further help with your self-assessments and company accounts, please contact us on 01273 514060

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