Self-employed workers will be able to apply for a fifth and final grant from the Self-Employed Income Support Scheme (SEISS) later this month.
Information on how the grant works was due to be released at the end of June, but has now been postponed to July.
The government website says details will be provided “early” this month.
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Here’s everything you need to know about the grant, including who is eligible and when you should be able to apply.
When can I apply for the fifth SEISS scholarship?
The government website says people will begin to be contacted with their personal claim dates in mid-July and that the claim window for the final grant will open towards the end of the month.
As with previous grants, the application dates are staggered, so you will have to wait until the date given to you to apply.
Who is eligible for the grant?
Eligibility for the fifth grant is the same as for the fourth.
To be eligible, you must be self-employed or a member of a partnership.
You must have traded in tax years:
- 2019-20, and submitted your tax return no later than March 2, 2021
You must also either:
- Currently negotiating, but impacted by reduced demand due to Covid-19
- Have negotiated but are temporarily unable to do so due to Covid-19
To determine your eligibility for the fifth grant, HMRC will review your 2019-2020 Self-Assessment Tax Return. Your trading profits must not exceed £ 50,000 and at least equal to your non-trading income.
If you are not eligible based on your 2019-2020 tax return, HMRC will then review the 2016-17, 2017-18, 2018-19 and 2019-20 tax years.
When making a complaint, you must declare that:
- You intend to continue trading
- You reasonably believe that there will be a significant reduction in your trading profits due to reduced trading activity, capacity, demand or inability to trade due to the pandemic from May 2021 to September 2021
You need to keep evidence that shows how your business has been affected by the pandemic.
About 600,000 more people can apply for both the fourth and fifth grants, thanks to the government allowing workers to submit their 2019-2020 and 2020-21 self-assessment tax returns.
This means that more newly self-employed people might be able to apply for the latest grants, as before, only people with tax returns covering the 2018-19 tax year could apply.
How much can I claim?
The amount of the fifth grant will be determined based on the reduction in your turnover between April 2020 and April 2021.
If your turnover has been reduced by 30 percent or more, you will receive 80 percent of the average three-month trading profit, up to a maximum value of £ 7,500.
If the reduction in your turnover is less than 30%, you will receive 30% of the average business profit over three months, up to a value of £ 2,850.
The government website says, “We will be providing more information and support from early July 2021 to help you determine how your revenue has been affected.”
How can I apply for the grant?
Applications will likely be made in the same manner as previous grants.
You should be contacted by email or text with your date to find out when you can claim.
Official guidelines state that you will need the following to make a claim:
- Your Self-Assessment Unique Taxpayer Reference (UTR)
- Your national insurance number
- Your Government Gateway username and password
- Your UK bank details including account number, sort code, account name and account linked address
You only need to provide bank details that can accept Bacs payments.
It should take up to six business days after you apply for your grant to go to your bank account, but HMRC asks you to wait 10 business days before contacting them, if payment has not been made. received.