Fifth self-employment grant: When can I apply for and how much will SEISS boost be?
CHANCELLOR Rishi Sunak has confirmed there will be a fifth grant for the self-employed, to help those impacted by coronavirus.
The fourth grant, which covers losses in the period from February 1 to April 30 2021, closed for applications on June 1.
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Both of the grants were made available for 600,000 newly self-employed workers as long as they submitted a tax return by midnight on March 2, 2021.
But who is eligible and when can you claim the fifth grant? We explain what we know so far.
When does the fifth grant come into effect?
The Chancellor announced in his Budget that there would be a fifth grant to cover loss of profits through May until September this year.
The extra help reflects the extension to the furlough scheme for workers on the PAYE payroll, which will end by October.
The grant – which the Government says will be the final one – can be claimed from late July.
We don't know an exact date yet for when applications will open.
Coronavirus help for the self-employed
HERE’S a round-up of the main coronavirus government schemes for the self-employed:
- Grants of up to £7,500 under the Self-Employment Income Support Scheme
- Deferral of Self Assessment Income Tax and VAT payments
- Grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
- Bounce Back Loans
- Furlough pay of up to £2,500 for some company directors
The government has said guideance for claiming the grant will be made available by the end of June – although again no specific date has been given.
How much will the fifth grant be?
Exactly how much you will be able to claim under the fifth grant will be determined by a turnover test.
Brits who have seen their turnover fall by 30% or more will be able to get the full grant, worth 80% of average monthly profits capped at £7,500.
Those who have seen their turnover drop by less than 30% will receive a smaller grant.
They will be able to get a 30% grant, capped at £2,850, as they deemed to have less need for taxpayer support.
Who is eligible for the fifth grant?
Similar to previous grants, there is a stringent set of criteria you must meet to be eligible for the payout.
For example, it is only available to people with trading profits of less than £50,000 but other criteria has changed from grant to grant.
Now, the Government has released details of who is eligible for the help.
You'll be able to claim the support as long as you meet the following criteria:
- Your trading profits must be no more than £50,000 and at least equal to or more than your non-trading income.
- You must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust.
- You must have traded in both the 2019 to 2020 tax year (and have submitted your tax return on or before 2 March 2021) and the 2020 to 2021 tax year.
- You must either be currently trading but impacted by reduced demand or have been trading but are temporarily unable to do so due to coronavirus,
- You must also intend to continue to trade and reasonably believe there will be a significant reduction in your trading profits
- You need to keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
How do I apply?
You won’t be able to apply for the fifth grant yet -you can put a claim in for this from late July.
Guidance on how to claim will be published by the end of this month.
When applications for the scheme open, you’ll most likely have to make your claim via the Gov.uk website.
Self-employed workers need the following info to claim:
- For Self-assessment unique taxpayer reference (UTR) – if you do not have this find out how to get your lost UTR
- National insurance number – if you do not have this find out how to get your lost national insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted.
For a deep dive into the how SEISS works, we've put together a guide with everything you need to known about the system.
Plus, we meet the entrepreneurs who’ve set up their own businesses after coronavirus left them jobless.
We've also put together a complete guide on how to fix your coronavirus-hit finances.
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