In his Budget speech last week, Chancellor Rishi Sunak announced an extension to the Self-Employment Income Support Scheme (SEISS), saying it will now provide support until September with two further grants.
For the first time since SEISS was launched, it has been widened to include those self-employed people who weren’t previously eligible.
We’ve rounded up some key details about the fourth and fifth grants:
- The fourth grant will now be worth a maximum of 80% of three months’ worth of trading profits, capped at £7,500. The value of this fourth grant is the same as grants one and three – grant two was capped at 70% of trading profits. HMRC looks at your tax returns from 2016-17, 2017-18 and 2018-19, 2019-20 and works out your average monthly trading profit.
- Applications for the fourth grant will open in late April until May 31. If you are eligible, HMRC will contact you in mid-April to give you your personal claim date and it will also contact newly eligible people to verify their details. You will be contacted on the phone number provided on your tax return. Those who are not contacted and are eligible should wait to receive a personal claim date in mid-April.
- You must have filed a 2019-20 tax return to be eligible, have traded in 2019-20 and 2020-21 and intend to continue to trade. Your average trading profit must be £50,000 a year or less.
- Your business must have had a new or continuing impact from coronavirus which you believe will cause a “significant reduction” in trading profits, either due to reduced demand, activity or capacity or if you’re unable to trade.
A final self-employed grant available from late July will be worth three months of average profits and covers May to September. Exact eligibility criteria has yet to be announced but the value will be determined by a turnover test comparing the year April 2020 to April 2021 with the pre-pandemic period.
If your turnover has fallen by 30% or more, you’ll be able to claim the full grant worth 80% of three months’ average trading profits, capped at £7,500. If it has fallen by less than 30%, you’ll be able to claim a grant worth 30% of three months’ average trading profits, capped at £2,850.
Contact our friendly team on 01905 622202 if you have any queries about SEISS.