Additional help for the self employed across the UK has been announced. These will be the 4th and 5th SEISS grant. The financial support from these grants will be available until September 2021. They follow the first three SEISS grants that came into place to offer additional financial help and support for self employed people across England and some parts of the UK.
The fourth SEISS grant will be available from 22nd April 2021. It will cover a three-month period from 1st February until 30th April this year. As with the previous self-employed income support schemes, the fourth grant will be worth up to 80% of three months’ average trading profits. This will be paid out in a single instalment, up to the value of £7,500.
A fifth grant will then cover 1st May until 30th September 2021. However, this final SEISS grant will work slightly differently. The grant amount available depends on the loss of income. If you are self-employed and your turnover has fallen by at least 30% you can still apply for the grant for up to 80% of profits. Again, this is up to the value of £7,500.
However, and this is where the change comes in, if your income has fallen by less than 80% but more than 30% you can apply for a grant of 30% of your trading profits. You can claim up to the value of £2,850. The claims for the 5th SEISS grant will open in July and be available until September.
It was reported that around 600,000 people missed out on previous SEISS grants. This was because they had recently started working for themselves. As they had not filed a tax return, there was no way to prove their income status. Therefore, these people were unable to apply for the SEISS grant.
Those that have filed a 2019/20 tax return via self-assessment on or before the extended deadline of 2nd March 2021 will be eligible for the 4th and 5th SEISS grants.
If you need financial help for your business, whether you are self-employed or not, call our team. As local accountants in Peterborough we can check if you are eligible for a grant through the self-employed income support scheme. We will also see if there are any other grants or funding that you are eligible for.