Rebekah Evans::SEISS formally known as the Self-Employed Income Support Scheme, has provided vital assistance to eligible self-employed people who have seen their income impacted by the coronavirus pandemic. The support was first launched back in 2020, however, it was later extended to offer further aid as the pandemic continued. In his Budget this week, Chancellor Rishi Sunak confirmed SEISS would be extended to cover a fifth and final grant, as well as revealing some of the details on the fourth grant – which has been greatly anticipated by self-employed individuals.
Now, following the all-important economic event, HM Revenue and Customs (HMRC) is issuing a vital update to the self-employed when it comes to SEISS.
The Revenue is now contacting people who may be able to claim under the fourth grant of SEISS.
These self-employed individuals will be given details about the grant and how they will be able to action their claim.
But, of course, the self-employed who are looking forward to SEISS grant four will also be keen to understand how the grant will operate.
The grant is to cover the months from February to April 2021 in another three months of support to self-employed individuals, but there is other information to bear in mind.
The Government is set to pay out a taxable SEISS fourth grant to self-employed people who have had their income affected by the pandemic.
It is worth noting, though, that the eligibility criteria for the SEISS grant has been widened to provide more people with support.
In order to qualify, a person will need to have filed their Self Assessment tax return for 2019/20 by March 2, 2021.
The SEISS grant will be calculated based on 80 percent of an individual’s average monthly trading profits over a period of three months.
This will be paid out in a single instalment, but will be capped at a total of £7,500.
The fourth grant for SEISS will be available to claim by late April, however the exact date has not yet been confirmed by the Government.
Details about the fifth grant are also expected to be released by the Government in due course.
HMRC will contact those it believes are eligible for the fourth grant, and the self-employed can expect to receive details.
Like previous grants, self-employed people will be given a claim date when they are advised to submit their claim for SEISS support.
All claims, however, must be made by May 31, 2021.
Chancellor Rishi Sunak confirmed details of both the fourth and the fifth SEISS grants when making his Budget speech earlier this week.
He said: “Support for the self-employed will also continue until September, with a fourth grant covering the period February to April, and a fifth and final grant from May onwards.
“The fourth grant will provide three months of support at 80 percent of average trading profits.
“For the fifth grant, people will continue to receive grants worth three months of average profits with the system open for claims in late July.”
However, Mr Sunak acknowledged there would be a change as the economy reopens in the summer.
People whose turnover has fallen by 30 percent or more will continue to receive the full 80 percent grant.
But for those who have seen their turnover only fall by less than 30 percent will receive a 30 percent grant.
First Published in Express.