Will I be eligible for the fifth SEISS grant?

Self-employed business owners will be able to receive a fifth and final grant through the SEISS scheme later this summer.

To use its official name, the self-employed support scheme is designed to help people recover lost earnings if they’ve been affected by the pandemic. Four grants have already been handed out with the last one worth a maximum of 80% of three months’ average trading profits, capped at £7,500.

Unlike the previous grants, the fourth SEISS instalment included 2019-20 tax returns which meant that around 600,000 recent self-employed starters were eligible for financial support.

Here’s what we know so far…

When is the fifth SEISS grant being released?

The fifth SEISS grant will be open to claims from late July although an exact date hasn’t been given. HMRC says it will contact people who will be able to apply from mid-July. 

To be eligible for the grant you must be a self-employed individual or a member of a partnership. You must also have traded in the tax years: 2019-20 (and submitted your tax return on or before March 2, 2021) and 2020-21. 

According to the Gov.uk website, full guidance for claiming the grant will be available by the end of this month. Not everyone can apply on the same day, as HMRC will contact you with an individual date to claim. 

The application process is relatively straightforward but make sure you have your National Insurance number and Government Gateway log in details to hand.   

To work out your eligibility for the fifth grant, HMRC will check your 2019-20 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 to 2020 tax return, HMRC will then look at the tax years 2016-17, 2017-18, 2018-19 and 2019-20.

How much will the fifth SEISS grant be worth?

The government will use a turnover test comparing the year April 2020 to April 2021, as well as your average monthly profits, to determine how much you can claim.

If your turnover has dropped 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, the same amount the fourth, third and first grant were worth.

For those who have seen their turnover fall by less than 30%, you’ll be able to claim a grant worth 30% of three months’ average trading profits, capped at £2,850.