Applications for the 4th SEISS grant closed 1 June 2021.
Which leaves one grant outstanding for payment, the 5th grant, covering the period 1 May 2021 to 30 September 2021. This final grant will be opened to claims from late July 2021.
The grant is taxable and will be paid out in a single instalment. Guidance for claiming the grant will be available by the end of June 2021.
To be eligible for the grant you must be a self-employed individual, or a member of a partnership and you must have traded in the tax years:
You must have traded in the tax years: 2019-20 and submitted your tax return on or before 2 March 2021, and 2020-21.
You must either:
- be currently trading but are impacted by reduced demand due to coronavirus,
- have been trading but are temporarily unable to do so due to coronavirus.
To work out your eligibility for the fifth grant, HMRC will first look at 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 are not eligible based on your 2019-20 tax return, HMRC will then look at the tax years 2016-17, 2017-18, 2018-19 and 2019-20.
If you do make a claim for the 5th grant you must declare that:
- you intend to continue to trade,
- you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand, or inability to trade due to coronavirus from May 2021 to September 2021.
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
HMRC will provide more information and support by the end of June 2021, to help you work out how your turnover was affected.
The amount you might receive will be based on:
| Turnover reduction | How much you will get | Maximum grant |
|---|---|---|
| 30% or more | 80% of 3 months’ average trading profits | £7,500 |
| less than 30% | 30% of 3 months’ average trading profits | £2,850 |
If you are eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim.
Source: Informanagement