cheap accountants - Covid-19

As the Nationwide lock-down continues with non-essential businesses closed the Government has announced an extension or a further, fourth round of the Self -Employment Income Support Scheme (SEISS). This blog post will explain how this grant works and what funding will be made available to self-employed sole traders. We do hope that all clients and their close families are well and virus free. We are very much looking forward to the exit from this pandemic and a return to life as normal for all of us.

What support is available?

The Government will pay a grant to qualifying individuals that is equal to 80% of three-months worth of average trading profits.

This will be paid in one single installment or grant payment and will be capped at an upper limit of £7,500.

Who can claim?

This fourth grant will consider the data contained within 2019/20 Self Assessment Tax Returns that have been file with HMRC.

The grant is available for anyone who became self-employed during the 2019/20 tax year. The remainder of the existing SEISS criteria continues to apply to this fourth grant.

Eligibility for the grant will be firmly placed on the data contained within an individuals 2019-20 Self Assessment Tax Return.

It is worth bearing in mind that the fourth grant could well be higher or lower than any previous SEISS grants received.

Basic claim criteria

  • Must be a self-employed individual (sole trader) or a member of a partnership
  • Self-employment trading profits must be no grater than £50,000
  • Self-employment trading profits must be at least 50% of total income
  • Must have traded in 2019/20 and continue to trade in 2020/21
  • The 2019/20 Self Assessment Tax Return must have been filed by 02 March 2021
  • Your self-employment business must have been detrimentally impacted by the coronavirus

How do I claim?

The grant will claimed online and this is expected to be open from late April 2021 to 31 May 2021.

You do not need to take any action at this stage. HMRC will contact all eligible individuals in mid-April and will provide them with a personal claim date. The personal claim date will then be the date from which the grant can be claimed.

Will there be a Fifth Grant?

The Government has announced that there will be a fifth and final grant that will cover the period May to September.

If you are eligible for this fifth grant you will be invited to apply for the grant from late July.

How much can I claim?

The fifth grant will be worth:

  1. 80% of three months’ average trading profits, capped at £7,500, for anyone with a reduction in turnover of 30% or more.
  2. 30% of three months’ average trading profits, capped at £2,850, for anyone with a reduction in turnover of less than 30%.