Good news for the self-employed! Check now to see if you can claim the fourth grant under the Self-Employed Income Support Scheme (SEISS). If you qualify, apply by 1 June 2021.
Basically, the fourth SEISS grant is worth 80% of three months’ average trading profits. The amount you will receive is capped at £7,500. It will be paid as single instalment. This grant covers 1 February to 30 April 2021.
Be aware of changes to how the grant is calculated. The fourth grant takes into account the 2019-20 tax return. So, if you’ve received previous grants, this time your payment may be higher or lower.
This grant is based on an average of your tax returns. It uses information from 2016-17, 2017-18, 2018-19 and 2019-20, where this is available. In some cases, HMRC will not use the 2019-20 return. For example, when considering new parents. Or people with a loan charge.
Am I eligible for the fourth SEISS grant?
If not, HMRC notifies you. In fact, you should have received an email in mid-April. Fortunately, there is guidance to help those affected. It’s available through the online claims service. Check to see if it’s accurate.
Are the ineligibility reasons given correct? If not, select the ‘If you don’t agree’ option. Then, conduct a review. Call the coronavirus helpline 0800 024 1222. Alternatively, use the webchat service. Of course, you can telephone to set up a review. HMRC will write to you regarding the outcome. Typically, this will take 10 working days. Do ensure that information is readily to hand. You may have to provide evidence during the review process.
If you’re no longer eligible for the SEISS, don’t despair. You may well qualify for other government support. Take a look at Restart Grant and the Recovery Loan scheme. Also check out business rates relief and business support schemes. Find out more at GOV.UK.
Amended tax returns
Tax return amends can be an influencing factor. It may mean you’re not eligible for the fourth SEISS grant. Or the fifth payment. Potentially, you can no longer claim all or part of these grants. This may be the case if you amended your 2016-17, 2017-18, 2018-19 and 2019-20 tax returns on or after 3 March 2021. The first three grants are unaffected.
The key question is this. What are the consequences of amending your tax return? Does this reduce the grant’s value by £100 or more? If so, notify HMRC. Do so within 90 days of making the amendment or receiving the grant. Choose the later date. Then, HMRC will let you know what you have to repay. And how to go about it. If you don’t tell HMRC, you may incur a penalty.
We can help
We can’t apply for a SEISS grant on your behalf. But we can advise. Talk to our experts on 01785 243276.
More Covid Updates
As restrictions relax, more businesses are getting back to work. However, many still need help. Government financial support remains in place for those impacted by Covid-19. But, it is reducing. Employers should be aware of changes to the Coronavirus Job Retention Scheme (CJRS).