Self-employed can now apply for the fourth round of SEISS grants.
Millions of sole traders will be receiving emails, letters to let them know if they are eligible.
Those people yet to receive notification can visit this page to find out if you are eligble. You will need to input your Unique Tax Reference (UTR) number.
The grants are intended to cover losses due to coronavirus from February 2021 to April 2021. They are set at 80% of three months average trading profits for those who have experienced reduced profits of 30% or more.
Your trading profits must be less than £50,000.
The grant will be paid in a single instalment, capped at £7,500. Remember, the grant, like previous payments, is taxable as it is classed as income.
Here’s what you need to know…
Who can claim 4th SEISS?
To be eligible for the fourth SEISS grant you must be self-employed or a member of a partnership. If you are trading through a limited company or trust you cannot claim.
You must have:
- Traded in tax years 2019-2020 and submitted a tax return before 2 March 2020
- Traded in 2020-2021.
You must be either:
- Currently trading but coronavirus has reduced demand.
- Trading but temporarily unable to do so due to coronavirus. For example, those forced to close due to government restrictions or those unable to work after testing positive for Covid-19.
You must also declare that:
- You intend to continue to trade.
- Reasonably believe there will be a significant reduction in your trading profits.
If you require examples of reduced activity, the government’s website explains more on this page.
Who cannot claim?
Those submitting their self-assessment tax return for the year 2019-2020 on or after 3 March are not able to claim.
How do I claim?
If you are eligible for the 4th grant, you will need your:
- Self-assessment UTR number
- National Insurance number
- Government Gateway user ID and password
- Bank details including account number, sort code and name on the account and address linked to it.
The window for making a claim will close on 31 May 2021.
If you are eligible SEISS grants payments are being made within 6 working days of your successful application.
What else do I need to know?
HMRC warns that if any claim is not genuine you may have to pay back some or all of the grant.
You must make your own claim; your accountant is unable to make SEISS claims on your behalf.
A fifth and final grant will cover the period of May 2021 to September 2021.
If you self-employed and are looking for an accountant, you can call our Newcastle office on (0191) 603 1760 or contact us via our website.