With the upcoming SEISS fourth grant HMRC have issued new guidance.
The SEISS (Self-Employment Income Support Scheme) has been extended until September 2021 there have been some changes to the eligibility. This will now be based on the submitted 2019-20 tax return.
Who can claim
To be eligible for the fourth grant you must be a self-employed individual or a member of a partnership.
To work out your eligibility HMRC will first look at your 2019-2020 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on your 2019-2020 Self Assessment tax return, we will then look at the tax years 2016-2017, 2017-2018, 2018-2019 and 2019-2020.
You must also have traded in both tax years:
- 2019-2020 and submitted your tax return by 2 March 2021
You must either:
- be currently trading but are impacted by reduced demand due to coronavirus
- have been trading but are temporarily unable to do so due to coronavirus
You must also declare that:
- you intend to continue to trade
- reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus
What the fourth grant will cover
The fourth grant will provide a taxable grant calculated at 80% of 3 months’ average trading profits. The fourth grant will be paid out in a single installment and capped at £7,500 in total.
HMRC still have 2019-20 self assessment tax returns to process. To allow them to do so the online claim service will be available from late April 2021 and is expected to run until 31st May 2021.
Further guidance will be released nearer to the launching of the online service.
If you have further questions please contact AJR & Co Ltd.