The scope of SEISS was extended by an announcement in the March 2021 Budget to help the newly self-employed and the existing scheme has been extended to a fourth and fifth round.
The fourth SEISS grant is available to individuals who began self-employment in the 2019/20 tax year, which began on 6th April 2019, as well as those who have previously claimed.
Individuals who are eligible will be able to claim the fourth round of SEISS at 80% of average trading profits capped at £7,500 for three months. The fourth grant will be available to claim in April and the fifth grant will cover May to September and is likely to be available in July.
To be eligible for the fourth grant, and for new entrants to the scheme, you must have filed a Self-Assessment tax return for the 2019/20 tax year by midnight on 2nd March 2021. All other eligibility criteria will remain the same as the third grant.
Criteria for claiming the fourth SEISS grant:
- You must be a self-employed individual or a member of a partnership.
- Your trading profits must be no more than £50,000 in the 2019/20 tax year and at least equal to your non-trading income (e.g. rents, interest etc).
- If you’re not eligible based on your 2019/20 Self-Assessment tax return, HMRC will then look at the three earlier tax years – 2016/17, 2017/18 and 2018/19.
- You must also have traded in both the 2019/20 (6/4/19-5/4/20) and 2020/21 (6/4/20-5/4/21) tax years –
You must either:
- be currently trading but are impacted by reduced demand due to coronavirus
- have been trading but are temporarily unable to do so due to coronavirus
You must also declare that:
- you intend to continue to trade
- you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus
You must make a claim yourself – agents and advisers cannot make the claim for you. We can however advise you of the anticipated amount to claim in advance or check the calculations once you have received the funds.
Be aware that these grants are taxable and will be disclosed on tax returns!
