Grant 4 SEISS (Self Employed Income Support Scheme)

Grant 4 SEISS details

We now have the full details of Grant 4 SEISS that will be open at the end of April and the eligibility criteria continue to be more restrictive than the first grants.

You will be contacted by HMRC in Mid April but before applying this time we strongly recommend you read the guidance to check your eligibility.

The fourth grant will be 80% of your average monthly trading profits calculated with reference to the last 4 years submitted tax returns paid in a single instalment covering 3 months’ worth of profits and capped at £7,500 in total. This amount will be taxable.

Grant 4 SEISS Eligibility

To be eligible you must be a self-employed individual or a  member of a partnership.

You must have traded in both tax years:

  • 2019 to 2020 and submitted your Self Assessment tax return on or before 2 March 2021.
  • 2020 to 2021

You must either:

You must also declare that:

  • you intend to continue to trade
  • you reasonably believe there will be a significant reduction in your trading profits. This is with reference to your accounting year in which this period falls into. If this period ( 1st Feb – 30 April 2021) falls into 2 years you can choose either one to indicate the drop in profits. HMRC ask you to make an “honest judgement” when considering this point. The reduction can be shown compared to a forecast as opposed to previous years.

You will be required to keep evidence to support your claim.

Please note that any amendments to your 19/20 tax return submitted after 2 March 2021 will be disregarded but you have an obligation to repay the grant if a subsequent amendment reduces or disqualifies you from the grant  with a de minimus of £100.00

You do not need to take into account the receipt of any other coronavirus scheme support payments when making this judgement.

If you have more than one business the reduction only needs to be evidenced in one. If you have diversified due to Covid you should consider how this is reported alongside your original business as it may have an impact on your eligibility. Please contact us for more advice.

To find out more please read our coronavirus support for businesses page.

 

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