The fourth Self Employment Income Support Scheme (SEISS) claim is opening now in late April. If eligible, you should have received correspondence from HM Revenue & Customs with details containing a specific date on which you can make your claim from.
The eligibility criteria which existed for SEISS grants 1, 2 and 3 still remains. However, rather than assess trading profits only for 2016/17, 2017/18 and 2018/19, trading profits from 2019/20 are now also considered.
As a result, to meet the initial eligibility criteria:-
- Trading profits for 2019/20, or on average for the four tax years including 2019/20, must be more than nil but no more than £50,000;
- Total trading profits for 2019/20 or on average for the four tax years including 2019/20, must be more than total non-trading income.
If you meet this initial criteria, to make a claim, your business must have been impacted by coronavirus between 1 February 2021 and 30 April 2021.
You must have traded in both of the following tax years:-
- 2019/20 and submitted your tax return on or before 2 March 2021
You must either:-
- be currently trading but are impacted by reduced demand due to coronavirus;
- have been trading but are temporarily unable to do so due to coronavirus.
You must also declare that you:-
- intend to continue to trade;
- reasonably believe there will be a significant reduction in your trading profits for the relevant basis period (i.e. period your business profits are calculated for) as a result of the impact coronavirus has had on your business from 1 February 2021 to 30 April 2021.
You must reasonably believe that you’ll suffer a significant reduction in trading profits in the relevant basis period due to reduced business activity, capacity, demand or inability to trade due to coronavirus between 1 February 2021 and 30 April 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected and how this has significantly reduced your business profits for the relevant basis period.
It is advised that you should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
How much is the grant?
If eligible to make a claim, like the first and third grant, clients can claim up to 80% of 3 months’ average trading profits, capped at £7,500. HMRC will work out your average trading profits using up to 4 years’ of submitted tax returns. This may affect the amount you’ll get which could be higher or lower than your previous grants.
If you claim the fourth grant and HMRC later determines that you were not eligible to do so, penalties of up to 100% of the grant received may be issued including interest.
If you deem yourself as eligible for the fourth SEISS grant, please note that the claim must be made on or before 1 June 2021. Claims can be made be following the link here.
Should you have any queries or require any assistance, please contact either of the following at the Omagh Office.
- Basis Period Reform 9 May 2023
- VAT Penalty Regime 21 March 2023
- Making Tax Digital for Income Tax 17 October 2022
- McAleer Jackson Chartered Accountants announces new Director 28 June 2022