It was announced in the Budget that there would be two SEISS grants:
Fourth Grant – covering three months at 80% of average trading profits. Paid out in a single instalment and capped at £7,500.
You must be a self-employed individual or a member of a partnership.
The 2019/20 tax return is referred to for eligibility (it must have been submitted before 2nd March 2021.) The trading profits must be under £50,000 and at least equal to non-trading income. Where available, the average is calculated from the average of trading profits up to four tax years between 2016 and 2020.
Claimants must be either currently trading and impacted by reduced demand, or were trading but are now temporarily not trading due to coronavirus. Eligibility depends on claimants experiencing a significant financial impact between February 2021 and April 2021 due to coronavirus.
Claimants must declare that they intend to continue to trade and reasonably believe that there will be a significant reduction in their profits due to coronavirus affecting activity, capacity, demand or inability to trade. Records must be kept in support of this claim.
The online claims service will be available from late April 2021 and will remain open until 31st May 2021. HMRC will contact eligible people and also let them have a personal earliest claim submission date.
Fifth Grant – covering three months of average trading profits but the percentage will vary depending on how badly claimants have been affected in the year to April 2021. Paid out in a single instalment and capped at either £7,500 or £2,850:
– If turnover has reduced by 30% or more, the percentage will be 80% of average profits capped at £7,500.
– If turnover has reduced by less than 30%, the percentage will be 30% of average profits capped at £2,850.
The online claims service will be available from late July and further details will be provided regarding the fifth grant in due course.
HMRC have also announced that SEISS grants are to be taxable in the tax year when they are received. So payments received after 5th April 2021 fall into the 2021/22 tax year and any tax due on these will not be payable until 31st January 2023.