The fifth grant, worth up to £7,500, is the final self-employment grant to be made available during the Covid pandemic.
Who is eligible for the grant?
To count as eligible, you need to be a self-employed individual or a member of a partnership.
You must have:
- traded in the tax year 2019/20 and submitted your tax return on or before 2 March 2021;
- traded in the tax year 2020/21;
- be currently trading but are impacted by reduced demand due to Covid; and
- have been trading but are temporarily unable to do so due to Covid.
HMRC will look at your 2019/20 self-assessment tax return to work out if you are eligible for the final grant:
- Your trading profits must be no more than £50,000, and at least equal to your non-trading income.
- If you are not eligible based on your 2019/20 tax return, HMRC will then look at the other tax years, starting from 2016/17.
Around 600,000 more people are eligible to apply for both the fourth and fifth grants, due to Chancellor Rishi Sunak announcing some changes to the scheme earlier this year which meant newly self-employed people were able to claim. Now, workers are able to submit their 2019/20 and 2020/21 self-assessment tax returns, while before this was limited to people with tax returns for the year 2018/19.
How much can I claim?
The amount of the final grant will be decided by how much your turnover has been reduced in the year April 2020 to April 2021:
- The grant is taxable and is worth either 30% or 80% of your average trading profits for three months.
- If your turnover has decreased by 30% or above, the grant will be worth 80% of three months’ average trading profits and the total grant will have a cap of £7,500.
- Meanwhile, if your turnover has decreased by less than 30%, the grant will be worth 30% of three months’ average trading profits and will have a cap of £2,850.
- The government has released a guide on how to calculate your turnover, however, do not include anything reported as any other income on your tax return. You should also not include any Covid support payments, for example, previous SEISS grants, Eat Out to Help Out payments & local authority or devolved administration grants.
How can I claim the grant?
Applications will be made in the same way as the other grants and you should receive notification form HMRC via email, text message, letter or within the online SEISS portal if your are eligible to apply.
Contact us for further details.