Martin Lewis provides warning on fourth SEISS grant deadline
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The Self-Employment Income Support Scheme (SEISS) recently stopped taking claims for the fourth grant, which offered claimants a grant worth 80 percent of their average trading profits. The total amount of the fourth grant, which covered February to April, was worth three months’ worth of trading profits, capped at £7,500. The fifth SEISS grant is expected to help support self-employed people through the next stage of the pandemic.
The Government has now released details on its website for the fifth SEISS grant, but prior to this little was known other than that a fifth grant would be available in the future.
The eligibility criteria for the fifth SEISS grant is broadly similar to the fourth grant, with claimants still required to declare that they intend to continue trading.
Claimants must also declare they “reasonably believe” there will be a “significant reduction” in trading profits due to coronavirus from May to September 2021.
Only self-employed individuals and members of partnerships remain eligible for the scheme and claimants are also required to keep evidence of how their business has been impacted by COVID-19.
When can you apply for the SEISS fifth grant?
SEISS grant five is expected to be available to claim from late July 2021.
As the fifth grant will cover May to September 2021, the applications should therefore open in the middle of the claim period.
Further guidance on how to claim the fifth SEISS grant is expected to be set out by the Government by the end of June.
From mid-July 2021, HMRC will contact eligible claimants based on their tax returns about applying for the next SEISS grant.
HMRC should give claimants a personal date they can make their claims from.
As has previously been the case with the last four grants, people will be able to make their SEISS claims via the Government’s dedicated online portal.
HMRC has previously aimed to pay out approved SEISS grants within six working days.
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How much will the fifth SEISS grant be worth?
The fourth SEISS grant was worth 80 percent of average monthly trading profits, and for some claimants, this will be the case for the fifth grant too.
Unlike previous SEISS grants, how much a claimant gets from the fifth grant is determined by their turnover.
How much a claimant’s turnover has been reduced in the April 2020 to April 2021 period will determine how much they receive in the fifth grant.
People who have experienced a turnover reduction of 30 percent or more will be eligible for a grant worth 80 percent of average trading profits, capped at £7,500.
People whose turnover reduction has been less than 30 percent will get a grant worth 30 percent of average trading profits, capped at £2,850 in total.
The Government website states: “We’ll provide more information and support by the end of June 2021 to help you work out how your turnover was affected.”
It is worth bearing in mind that although the fifth grant covers a period of five months, the grant will only provide three months’ worth of average trading profits.
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