If you are self-employed and your business has been negatively impacted by the covid-19 pandemic, you could be eligible for the fourth grant of the Self-Employment Income Support Scheme.
To make your claim for the fourth grant, you must do so on or before 1 June 2021. This grant will cover the period of reduced earnings from February to April.
How do I know if I can claim?
To be eligible, you must be a self-employed individual or a member of a partnership that meets the following criteria:
- You must have traded in both tax years 2019-2020 (where you submitted your tax return on or before 2 March 2021) and 2020-2021
- You must either be currently trading with reduced demanddue to coronavirus or you are temporarily unable to trade due to the pandemic.
Finally, you must also declare that you intend to continue trading and that you reasonably believe there will be a significant reduction in your trading profits.
How much will I receive?
The fourth grant is calculated ay 80% of 3 months’ average trading profits. It will be paid out in a single instalment and capped at £7,500 in total. The amount that you receive will depend on your average trading profits.
Your average trading profits will be worked out using (up to) the last 4 years’ submitted tax returns. This may affect the amount you will get, which could be higher or lower than your previous grants. If you have a trading gap within these 4 years, your average trading profit will only be calculated from your most recent tax returns.
For example, if your average trading profits were £42,000 over the last 4 years:
- 42,000 / 12 = £3,500
- Multiply £3,500 by 3 = £10,500
- Work out 80% of £10,500 = £8,400
- You will then receive £7,500, because of the cap.
I am eligible, how do I claim?
If your business meets the eligibility criteria, you can start your claim here. Please note that you can only submit a claim for yourself and you must not ask a tax agent or advisor to claim on your behalf. Doing so may result in a fraud alert, which will delay you from receiving your payment.
What will I need to make my claim?
To complete your application, you will need your:
- Self-Assessment Unique taxpayer reference (UTR)
- National Insurance number
- Government gateway user ID and password
- UK bank details, including account number, sort code, name on the account and address linked to the account.
If you have any questions relating to the content in this article, please contact your usual Partner or Manager, or call us on 01942 242 245 and we will be happy to help.