The Self-Employment Income Support Scheme (SEISS) will offer two more grants in 2021. The fourth grant will cover February to April 2021, while the fifth grant will cover May to September 2021. Here is what we know so far about SEISS grant four.
How much will the fourth SEISS grant be worth?
The fourth grant will be worth 80 percent of average monthly trading profits for a three-month period, capped at £7,500 in total.
The fifth SEISS grant will either be worth 80 percent or 30 percent of average monthly trading profits.
A claimant who has seen a drop in turnover of 30 percent or above will receive a grant worth 80 percent of average monthly trading profits, capped at £7,500.
A claimant whose turnover has dropped by less than 30 percent will be entitled to a grant worth 30 percent of average monthly trading profits, capped at £2,850.
It is worth noting the fifth grant will cover May to September, but it will only be three months worth of average trading profits.
The fifth SEISS grant is expected to be the final grant under the support scheme.
The first and third SEISS grants were worth 80 percent of average monthly trading profits, while the second grant was worth 70 percent.
People eligible for SEISS should expect to be contacted in mid-April with a personal claim date.
The Government website currently states: “To allow us to process recently submitted 2019 to 2020 Self Assessment tax returns, the online claims service for the fourth grant will be available from late April 2021 until May 31, 2021.
“If you are eligible, HMRC will contact you in mid-April to give you your personal claim date. This will be the date that you can make your claim from.
“There will be more guidance about the fourth grant in due course.”
Who is eligible for SEISS grant four?
Some 600,000 newly self-employed people are thought to be eligible for the fourth SEISS grant now.
However, the eligibility criteria for the next instalment will remain similar to the previous three grants.
Claimants must have trading profits of less than £50,000 and profits must be at least equal to the claimant’s non-trading income.
A self-employed individual or member of a partnership may be eligible, providing they have traded in both the 2019 to 2020 and the 2020 to 2021 tax years.
A tax return for the 2019 to 2020 tax year must have been submitted by March 2, 2021.
Claimants must also be either currently trading but impacted by reduced demand, or have been trading but are temporarily unable to do so.
Claimants must also declare they intend to continue to trade and they “reasonably believe there will be a significant reduction in [their] trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus”.