2021 Budget announcements on SEISS Grants

The Self-Employment Income Support Scheme (SEISS) will continue until September with a 4th and 5th grant.

The 4th and 5th grants will take into account submitted 2019/20 tax returns which good news for those who missed out on the first 3 grants

4th SEISS grant

This is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant is based on average profits for 2016/17 to 2019/20, where available or the years available in other cases

The grant will be available to claim from late April. As with previous grants, trading profits must be no more than £50,000 and at least equal to non-trading income in order to claim the fourth SEISS grant.

Eligibility for the fourth SEISS grant will also depend on whether you experienced a significant financial impact from coronavirus between February 2021 and April 2021.

The calculation now takes into account the tax year 2019/20, so you may receive grants that are higher or lower in value than any previous SEISS payments

From mid-April, you will be given your personal claim date by HMRC which confirms the earliest date you can claim. The online claims service for the 4th grant will be live from late April.

You must make your claim for the 4th grant between their personal claim date and 31‌‌ ‌May 2021 at the latest.

You  will need to make an honest assessment that there has been a significant reduction in trading profits due to reduced demand or  inability to trade, and to keep appropriate records as evidence.

5th SEISS grant

There will be a 5th and final SEISS grant covering May to September 2021. The amount of the 5th grant will be determined by how much your turnover has been reduced.

The grant will be worth 80% of three months’ average trading profits, capped at £7,500, for those with a higher reduction in turnover (30% or more). For those with a lower reduction in turnover, of less than 30%, then the grant will be worth 30% of three months average trading profits.

We still await details as to how this will be worked out

You will be able to claim the 5th grant from late July if you are eligible. Further details will be provided on the 5th grant in due course.

More details of these grants can be found on HMRC

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