The online service to claim the fourth Self-Employment Income Support Scheme (SEISS) grant will be available from late April 2021. Unlike previous instalments of the grant, however, HMRC have confirmed that they will contact those who are eligible (based on previously submitted tax returns), to provide individuals with a date from which they can make their applications.
The Gov.uk website states that contact will be made by either email, letter, or within the online service, so be aware of the various communication options.
To protect the scheme from fraud, HMRC is asking those who began self-employment in 2019/20 and wish to claim the fourth and fifth grant, to complete pre-verification checks. If this applies to you and you receive a letter, you should comply with the request as if may affect your claim if you do not. If you are concerned that it may be a scam, you can call HMRC and ask them to apply a password to your claim.
The fourth SEISS grant covers the period from 1 February 2021 to 30 April 2021, and claims must be made on or before 1 June 2021.
Who can claim the fourth SEISS grant?
To be eligible for the fourth grant you must be self-employed or a member of partnership, you are unable to claim the grant if you trade through a limited company or trust.
To determine eligibility for the fourth grant, HMRC will first look at your 2019/20 self-assessment tax return, ensuring trading profits are less than £50,000 and at least equal to, or more, than your non-trading income.
If you are not eligible based on your 2019/20 self-assessment tax return, HMRC will then look at the tax years 2016/17, 2017/18, 2018/19 and 2019/20 to confirm eligibility.
To be eligible, you must have traded:
– in the tax year 2019 to 2020, and submitted your tax return on or before 2 March 2021; and
– in the tax year 2020 to 2021
You must also be either:
– currently trading but are impacted by reduced demand due to coronavirus; or
– have been trading but are temporarily unable to do so due to coronavirus
Additionally, you must also declare that you:
– intend to continue to trade
– have reasonable belief there will be a significant reduction in your trading profits
Regarding the second point, in order to claim, you must ‘reasonably believe’ that you will suffer a significant reduction in trading profits, due to reduced business activity, capacity, demand or inability to trade as a result of coronavirus between 1 February 2021 and 30 April 2021. You do not have to consider any other coronavirus scheme support payments which you may have received previously when deciding whether the reduction in profit is significant.
Remember to keep evidence that illustrates how your business has been impacted by coronavirus. HMRC have confirmed that they expect claimants to make an honest assessment about whether you ‘reasonably believe’ your business will have a significant reduction in profits.
How much can I claim?
The fourth grant is calculated at 80% of 3 months’ average trading profits, and will be paid in a single instalment, capped at £7,500 in total. In order to determine average trading profits, HMRC will look at up to 4 years of your submitted tax returns.
How to claim
The online service for the fourth grant will be available from late April 2021. HMRC will contact those who are eligible in mid-April to confirm the date that they are able to claim from, either by email, letter or within the online service.
For more information on the on the fourth SEISS grant, click here.
Get in touch
For advice and support in claiming the fourth SEISS grant, or any other SEISS related queries, please speak to your usual PM+M adviser or email us at firstname.lastname@example.org.
This information is correct as of 14 April 2021. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.