A fourth taxable grant is available to eligible self-employed individuals and members of a partnership, as part of the Self-Employed Income Support Scheme (SEISS), to cover the period 1 February 2021- 30 April 2021.
The grant will be calculated at 80% of 3 months’ average trading profits, capped at £7,500.
HMRC has confirmed that average trading profits will be worked out based on up to 4 years’ of submitted tax returns – 2016/17, 2017/18, 2018/19 and 2019/20.
The online service for applications is now open, and eligible individuals can expect to receive a communication (email, letter, or within the online service) from HMRC specifying the date that you can make your claim.
Eligibility to claim fourth SEISS grant
To be eligible for the fourth grant you must have traded in the tax years 2019/20 and 2020/21, whilst having submitted your tax return for the former before 2 March 2021. In addition, you must either be currently trading but impacted by reduced demand (i.e., a significant reduction in your trading profits) due to coronavirus or otherwise have been trading but temporarily unable to do so.
Whatever your circumstances, the intention to continue to trade must be demonstrable.
HMRC expects individuals to make an honest assessment about whether the business has been or will be severely impacted by reduced activity between 1 February 2021 and 30 April 2021, by way of lesser profits in the period the grant covers, and evidence of this fact should be available.
We know there will be a fifth grant covering May 2021 to September 2021, but we await further guidance in respect of this round of funding.
How can George Hay help?
If you’re concerned about your eligibility for the fourth SEISS grant, if you have questions about the tax consequences of accessing this support, or if you need support with preparing your claim, contact us today.