As part of the government’s continued support of recovery from the effects of the pandemic, the fourth extension of the Self-Employment Income Support Scheme (SEISS) will be available to 100,000s more people than previous rounds.
This does not constitute advice and advice should be sought in all instances before acting on it.
Applications open 22 April for some but dates will be staggered and will remain open until 1 June. There’s also a planned gift grant but when that will become available hasn’t yet been announced.
We’ve taken a look at the latest SEISS grant and here’s what you need to know about the coronavirus related relief available to the self-employed and small business owners.
Specifics about the fourth grant
This instalment of the SEISS will be available to 600,000 more people and will:
- cover from February to April, inclusive, and
- be worth a maximum of 80% of three months’ worth of average trading profits, up to £7,500 – the same amount as the first and third grants.
Everyone gets their own application date, so if you meet eligibility, make sure you’re aware of yours.
The reason for the increased availability is because the SEISS scope has now been widened to include 2019/20 tax returns. It’s worth noting that if you now qualify that doesn’t mean you can back-claim for the other grants.
The fourth grant will be based on any submitted tax returns from four most recent tax years – 2016/17, 2017/18, 2018/19 AND 2019/20 — so HMRC can work out your average monthly trading profit. If you didn’t submit your tax returns all four years, your most recent consecutive returns can be used.
Eligibility criteria
- You must have filed a 2019/20 tax return.
- You must have traded in both tax years 2019/20 and 2020/21 and intend to continue to trade.
- Your business must have had a new or continuing impact from the pandemic – which you will need to be able to prove – and created a “significant reduction” in profits. Proof can come in the form of business accounts showing decreased activity, records of reduced or cancelled contracts or appointments. Additional information is required to prove you have been unable to trade completely.
- You must earn at least 50% of your total income from self-employment.
- Non-trading income (like from property, dividends, pensions, or any taxable benefits) must not exceed 50% of your total income.
- Your average profit must be £50,000 a year or less. (Keep in mind this is an average of the last four years of returns, so if you earned less than £50,000 over those four years, you’ll qualify.)
As long as you meet the eligibility criteria for this round, it won’t matter that you haven’t applied for a grant previously. You can keep working if you claim the grant as long as you can provide proof that your business remains impacted.
Partner with a trusted professional
If you need to understand whether or not you qualify for the fourth SEISS grant, we’re happy to help you work out your eligibility. We can undertake a financial review and help you plan what to do with your grant money or prepare for the possibility of not qualifying. Get in touch today so you’re prepared when your application date arrives.
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