Martin Lewis grills Rishi Sunak over SEISS timetable
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The fourth instalment of the Self-Employment Income Support Scheme (SEISS) will offer eligible claimants 80 percent of their average monthly trading profits, capped at £7,500 in total. The grant is one of two grants to be offered by the Government later this year, with a fifth grant expected to cover May to September 2021. Here are some of the main things to be aware of when applying for SEISS grant four.
Eligibility criteria extended
The eligibility criteria for SEISS grant four remains largely the same as the previous three grants.
However, thousands of newly self-employed people are now eligible for the support.
Lucy Cohen, co-founder of Mazuma, told Express.co.uk: “Thankfully, SEISS 4 is now available to more people than the previous grants, with the tax data from 2019/20 meaning that around 300,000 more tax payers may be eligible who were new businesses, plus a further 300,000 who were previously excluded by the 50K income cap.
“Before assuming that you are not be eligible for support this year, please double check with your Accountant or HMRC to avoid losing out on help you are entitled to.”
The SEISS grant payment
Claimants should be aware that SEISS grant four is paid out in one lump sum instalment, which covers the three-month period of February to April 2021.
The grant is worth 80 percent of average monthly trading profits, but it is taxable and is capped at £7,500 in total.
According to one expert, claimants should also be aware the next SEISS instalment could be worth less than previous grants they may have received.
Richard Alvin, former advisor to the Government on SMEs and current Group Director of Capital Business Media, told Express.co.uk: “With regards to the SEISS grant, claimants need to be aware that they may not necessarily get the same amount they received before, given that the 2019/20 tax return period has passed and this return will be used to decide on the grant received.
“My concern is that some may be expecting a similar amount and have budgeted for that.
“If the figure is a lot lower, it could cause major problems.
“Perhaps seeking advice from an accountant or business advisor to understand other options might be helpful.”
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The claim process
Potential SEISS claimants need to be aware of the eligibility criteria which must be met for claimants to get the fourth grant.
The fourth grant comes with an added clause where claimants must declare they “reasonably believe there will be a significant reduction” in trading profits “due to reduced business activity, capacity, demand or inability to trade due to coronavirus”.
Paul Kelly, Head of Employment at Blacks Solicitors, explained to Express.co.uk: “During the recent Budget, the Chancellor announced a fourth SEISS which can be claimed from late April until the end of May via the Government’s website.
“Self-employed people (including members of a partnership) can claim for this grant of 80 percent of three month’s average trading profits, capped at £7,500.
“Eligibility will initially be worked out with reference to a claimant’s 2019/20 self-assessment tax return.
“Claimants must have traded in the 2019/20 and 2020/21 tax years, be currently trading but affected by COVID-19 (or temporarily prevented from trading due to COVID-19) and confirm that they intend to continue to trade or that there will be a significant reduction in profits due to COVID-19.”
SEISS claim date
The fourth SEISS grant will be available to claim from late April until the end of May.
Eligible claimants should be contacted with a personal claim date in mid-April.
Further guidance is expected from the Government in due course about applying for the fourth SEISS grant.
Got a question about furlough or the Self-Employment Income Support Scheme (SEISS)? Email [email protected] and we’ll do our best to get experts to comment on your question in an article.
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