Due to the unfaltering impact of COVID-19 had on the economy, the Government has announced that the self-employed will receive a fourth grant, covering 80% of the 3 months’ average profit, capped at £7,500 and paid in a single instalment.
4th Grant: In order to primarily process the 2019/2020 Self-assessment tax returns and determine the grant eligibility, the online grant claim will be available from late April 2021 until 31 May 2021. If you do not meet the eligibility criteria based on your 2019/2020 tax return, HMRC will look back to the previous tax years to establish your status. If assessed as eligible, the HMRC will contact you and provide your personal claim date (from this date you’ll be able to make your claim).
To view the eligibility criteria, visit the HMRC SEISS web page.
5th Grant: The fifth grant will be available for claim from late July and will be covering May to September 2021. The claimable amount will be based on the turnover between April 2020 and April 2021 and how much it has been reduced.
If the drop in turnover is 30% or more, you will be entitled to a grant of 80% of the average monthly trade profit, capped at £7,500. But for those whose turnover has decreased by less than 30%, the fifth grant will be worth 30% of the average monthly trading profit, capped at £ 2,850 for the three-month period. The HMRC will publish further details on the fifth claim in due time.