Fourth Grant for the Self-Employed

The Fourth Grant – Self-employment income support scheme

The self-employed have been massively impacted by the Covid-19 pandemic. This has been recognised by the UK government following the initial announcement back in November 2020, there will be a roll-out of a fourth grant.

 

During the Budget 2021 the fourth SEISS grant was confirmed. This grant will be set at 80% of trading profits over a 3 month period, will be paid in a single installment and will have a cap of £7,500. Taking in to account tax returns between 2019-2020, the fourth grant will also be available for those who became self-employed in the same tax year; 2019-2020. Eligibility in to the scheme will be based on this tax return and the total will received may differ from any previous grants you may have received.

Can you claim?

If you are self-employed or part of a partnership and your intention is to continue trading, you will be eligible for the fourth grant. To find out if you are eligible, have a look at your 2019-2020 self-assessment tax return and confirm that:

– Your trading profits are equal or above your non-trading income
– Your trading profits do not exceed £50,000
– You have traded over both tax years 2019-2020 and 2020-2021
– Your self-assessment tax return has been submitted. (Deadline for this was 2nd March 2021)

For eligibility you must fall in to one of the two categories:

– Are able to trade currently but have decreased demand due to Covid-19
– Temporarily unable to trade due to Covid-19

How to make a claim

HMRC have advised that the processing of self-assessment tax returns is ongoing. This means that the fourth grant application will not commence until the end of April 2021 and continuing through to the end of May 2021. Individuals will be able to make a claim for the fourth grant using the online claims service.

There is no need to rush to the claims website though. HMRC have advised that those who are eligible will be contacted by the middle of April 2021 and given a date to apply for their claim.

Will there be a fifth grant?

The UK government have also announced that a fifth grant will indeed be rolled out.

This fifth and final grant will cover the period between May and September 2021 and those eligible will be able to input their claim from the end of July 2021.

The fifth grant will be dependent on turnover during the year running April 2020 – April 2021 and will have two band caps.

For those with a turnover reduction of 30% or higher:

– 80% of average trading profits over a 3 month period, will be capped at £7,500.

For those with a turnover reduction less than 30%:

– 30% of average trading profits over a 3 month period, will be capped at £2,850

More information will follow about the fifth grant as we near the application date.

If you are unsure how this will affect you, or do not know if you will be eligible to claim, then contact the NEXA Accountants team today and see how we can help advise you.