SEISS 4th round: Am I eligible and how do I claim?
This month the government will be opening a 4th grant for the self employed that have experienced business disruption due to Covid-19. You will be contacted from mid April if HMRC believes you are eligible.
What does the grant cover?
The government has announced that it will pay a taxable grant which is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total.
The value of the grant is based on an average of your trading profits for up to four tax years between 2016 to 2020, where the information is available.
When can I claim?
The grant will be available to claim by late April. HMRC will be in touch prior to this if it believes you are eligible.
Am I eligible?
As with previous grants, trading profits must be no more than £50,000 and at least equal to non trading income in order to claim the fourth SEISS grant.
Eligibility for the fourth SEISS grant will depend on whether you experienced a significant financial impact from coronavirus between February 2021 and April 2021.
HMRC will take into account your 2019-20 return when assessing your eligibility for the scheme. This may also affect the amount of the fourth grant, which could be higher or lower than previous grants you have received.
For this period, you will need to confirm that there has been a significant reduction in your trading profits because of reduced demand, or your inability to trade. If you make a claim, you will need to keep appropriate records as evidence.
What do I need to do?
HMRC will contact you from mid April if it believes you are eligible for the fourth SEISS grant to tell you how you can claim. You will be provided with your personal claim date, which will be the earliest date you can submit a claim for the fourth SEISS grant.
Claims for the fourth SEISS grant must be made by 31 May 2021, at the latest.
The fifth grant
The government has also announced that there will be a fifth and final SEISS grant, covering the period between May and September 2021, which you will be able to claim from late July if you are eligible.
The amount of the fifth grant will be determined by how much your turnover has been reduced. The grant will be worth 80% of three months’ average trading profits, capped at £7,500 for those with a greater reduction in turnover (30% or more). For those with a lower reduction in turnover of less than 30%, the grant will be worth 30% of three months’ average trading profits.
The government has stated that further details will be provided on the fifth grant in due course. If you have any questions please get in touch with your Swindells’ partner who will be able to advise you further
Late tax payment penalties to change
The government is changing the penalties charged for late submission of returns and late payment of tax it has been announced. The changes will initially apply to VAT and Income Tax Self Assessment (ITSA). As part of this reform, interest charges and repayment interest will be harmonised to bring VAT in line with other tax regimes.
How to prepare for the end of the Coronavirus Job Retention Scheme
The current CJRS is due to end on 30 September 2021 and will not be extended. Employers should now be reviewing the implication so the scheme ending, with a number of issues to resolve including redundancies, final claims, corrections and post CJRS activities.
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