SEISS Fourth Grant
The fourth Self Employed Income Support Scheme (SEISS) grant will be set at 80% of three months’ average trading profits, paid out in a single instalment, capped at £7,500. It will take into account the 19/20 tax return when looking at both eligibility and profit (average trading profits is calculated over four tax years or since you started trading), which may mean the grant is higher or lower than previous grants, or that you are now eligible or no longer eligible. The claims service will be open from late April to the end of May, and if you are eligible, HMRC will contact you during April to give you a date that you can claim.
To be eligible, your trading profits must be no more than £50,000 and at least equal to your non-trading income on your 19/20 tax return which must have been submitted by 2 March 2021.
If you are not eligible based on the tax return for 19/20, HMRC will also look back at the previous three years.
Other criteria which you have to declare during the claims process are that you have traded in tax years 19/20 and 20/21 and you are intending to continue to trade but have been impacted by reduced demand or temporarily unable to trade due to coronavirus. You must also believe that there will be a significant reduction in your trading profits due to the pandemic.
PRE-VERIFICATION FOR NEW CLAIMANTS
If you were newly self employed and did not qualify for the previous grants, HMRC may ask you to complete pre-verification checks to protect the scheme from fraudulent claims. If selected, you will receive a letter informing you that HMRC will call you to confirm your email address, and then send a link to a Dropbox account. You will then have just two days to upload proof of your identity and three months’ of bank statements to prove your trade. If you receive a letter, you should check that HMRC has the correct phone number for you by calling 0800 024 1222 as you will not be able to claim if they cannot contact you.
We also are now aware that the fifth grant will be open for claims from late July and the amount of the grant is determined by how much your turnover has reduced in the tax year to April 2021. It will remain at the same level as the fourth grant if your turnover has reduced by 30% or more, but if turnover has been affected by 30% or less, it will be calculated at 30% of three months’ average trading profits, capped at £2,850.