Self-Employment Income Support

The online service to claim the fourth grant under the Self-Employment Income Support Scheme will be available from late April. In advance of this, HMRC have published some guidance on who can claim the fourth grant and what the process for doing so will be.

The grant will cover 80% of 3 months’ average trading profits, capped at £7,500 total and paid out in a single instalment. HMRC will work out your average trading profits using up to 4 years’ of submitted tax returns.

You can find the full guidance on GOV.UK here, and we have summarised some of the key points below.

Who can claim

In order to claim the fourth grant you must:

  • Be a self-employed individual or member of a partnership
  • Have traded in both tax years 2019-2020 and 2020-2021
    • Have submitted your tax return on or before 2 March 2021
  • Either:
    • Be currently trading but are impacted by reduced demand due to coronavirus
    • Have been trading but are unable to do so due to coronavirus
  • Declare that you:
    • Intend to continue to trade
    • Reasonably believe that there will be a significant reduction in your trading profits

With regards to the “reasonable belief” element, you must keep evidence that shows how your business has been impacted by coronavirus during the period 1 February 2021 to 30 April 2021, resulting in less business activity than expected. Before you make a claim you should also decide if this impact will cause a “significant reduction” in your trading profits.

What the fourth grant covers

The fourth grant will provide a taxable grant calculated at 80% of 3 months’ average trading profits. The fourth grant will be paid out in a single instalment and capped at £7,500 in total.

How to claim

HMRC will contact you either by email, letter, or within the online service to give you a date that you can make your claim from. Please make sure to check this against the list of genuine HMRC contacts. If you are uncertain whether or not a contact from HMRC is genuine, contact them using the details available on GOV.UK here

Further support

The UK government has also announced that there will be a fifth and final grant covering May to September.

You will be able to claim from late July if you are eligible for the fifth grant.

The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.

The fifth grant will be worth:

  • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
  • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

Further details will be provided on the fifth grant in due course.

More information and examples are available on‌‌ G‌‌‌‌O‌‌V‌‌.UK to help you check eligibility to claim‌‌.

Page updated: 15/04/2021

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