16/04/2021 by Pete Bird
HMRC - SEISS fourth grant details
HMRC -announce SEISS fourth grant details
HMRC have updated their Self-Employment Income Support Scheme (SEISS) guidance to reflect the fourth grant which will become available later this month.
- The SEISS is a Coronavirus support payment designed to financially assist the self-employed through the pandemic.
- Details of the fourth SEISS grant, covering May to September 2021, was announced at Budget 2021 on 3 March 2021. The grant is set at 80% of three months average trading profits paid in a single instalment and capped at £7,500.
- This is the first of the SEISS grants to take into account 2019-20 tax returns and will be available to those who became newly self-employed in that tax year (between 6 April 2019 to 5 April 2020).
ConditionsIn order to qualify for the fourth grant, there are a number of key conditions which must be met. The taxpayer must:
- Carry on a trade that has been adversely affected by circumstances arising from Coronavirus.
- Have submitted tax returns, before 3 March 2021, for all relevant years.
- Have traded in both 2019-20 and 2020-21.
- Intend to continue to carry on a trade in 2021-22.
- Have trading profits of £50,000 or less which are at least equal to non-trading income.
- o This test will first be applied to 2019-20. If the condition is not met in that year, HMRC will look at the overall position in up to four previous tax years.
Claims and HMRC contact
- In mid-April 2021, HMRC will contact eligible taxpayers by e-mail, letter or online to give a personal claim date.
- o This personal claim date will be the earliest date on which a claim can be made.
- In March 2021, HMRC started to contact taxpayers directly who became newly self-employed in 2019-20 and may be eligible for the grant.
- o Not all newly self-employed taxpayers will be contacted. Those that do not receive contact should wait to receive their personal claim date in mid-April.
- The online service to claim the fourth grant will be available from late April2021.
- o As with previous rounds of SEISS grants, agents (accountants) cannot claim on behalf of clients.
- Claims for the fourth grant must be made on or before 1 June 2021.