HMRC has announced full details of the latest grant available to self-employed business owners through the Self-Employment Income Support Scheme (SEISS).
What is the SEISS?
The SEISS is a temporary initiative designed to support self-employed people whose businesses have been affected by the coronavirus (Covid-19) pandemic. The scheme was announced in March 2020 by Chancellor Rishi Sunak and the fourth of five planned grants is now available.
This grant, for businesses affected by the coronavirus crisis from 1st February to 30th April 2021, will cover up to 80% of three months’ worth of the business’s average monthly profits, up to a total of £7,500.
Who is eligible for the fourth grant?
You can apply for the fourth grant if you’re self-employed, either as a sole trader or a partner in a partnership. To be eligible, you must have traded during the 2019/20 and 2020/21 tax years and you must have submitted your Self Assessment tax return for the 2019/20 tax year by 2nd March 2021.
In addition, you must be either:
- trading but experiencing reduced demand due to coronavirus
- temporarily unable to trade due to coronavirus (for example, if you have tested positive for coronavirus and need to self-isolate)
When you apply for the grant, HMRC will ask you to declare that you intend to continue to trade and have a ‘reasonable belief’ that there will be a ‘significant reduction’ in your trading profits for the period covered by the grant. HMRC provides more information about who can claim on its website.
How to apply for the fourth grant
If you’re eligible for the fourth grant, you can now make a claim through HMRC’s website. You must make the claim yourself; asking a tax adviser to make the claim on your behalf may trigger a fraud alert and delay the payment of the grant.
In order to make a claim, you’ll need:
- your Unique Taxpayer Reference (UTR)
- your National Insurance number
- your Government Gateway user ID and password
You’ll also need to provide details of a UK bank account, including the account number, sort code and the address that’s linked to the account.
You can find out more about the support available for small businesses during the coronavirus pandemic on our small business coronavirus support hub.
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.