Can I claim the fourth and fifth SEISS payouts during 2021?

If you commenced self-employment after 5th April 2019

If you started your self-employment after 5th April 2019, you were denied support under this scheme from the first three quarterly payouts to 31st January 2021.

The good news is that due to lobbying by tax professionals and self-employed support groups, the SEISS is being opened to traders who commenced after 5th April 2019. However, there is an additional hurdle to jump before you can make a claim; your tax return for 2019-20 needs to have been filed by midnight 2nd March 2021. 

Additionally, your business must be adversely affected by the Coronavirus pandemic. All of your profits from self-employment must be less than £50,000 and at least 50% of your income. 

If you commenced self-employment on or before 5th April 2019

If you qualified for the first three grants, you should be eligible for the further grants due this year unless your circumstances have changed, for example, if you are no longer adversely affected by COVID disruption.

For those of you who may be claiming for the first time, you will need to claim using your online tax account. HMRC should advise you when the claims process is open for business.

If claiming the fourth grant – 1st February 2021 to 30th April 2021

The fourth SEISS grant covers February 2021 to April 2021. It’s worth three months’ average profits capped at £7,500 and can be claimed from late April.

If claiming the fifth and final grant – 1st May 2021 to 30th September 2021

The fifth and final grant will cover the period from May 2021 to September 2021. The SEISS grant will be dependant on the impact that Covid-19 disruption has had on profits. 

• If your turnover has fallen by 30% or more (because of Covid-19), you’ll be able to claim a grant equal to 80% of your average profits for three months, capped at £7,500. 
• However, if your turnover has dropped by less than 30%, you will be entitled to a reduced grant of 30% of three months’ average profits, capped at £2,850. 

The final grant will be available from late July of this year.

There is a potential misfit in this fifth grant. Although it covers a five-month period (May – September 2021), the actual payout for this period is based on three months. What about the other two months?

We can help

You’ll only be able to claim the grant if you have been adversely affected by the pandemic, and grants received under the scheme are taxable and must be considered in working out your profits. If you’re unsure how to proceed, call An Accounting Gem today on 01473 744 700 or visit our website at aag-accountants.co.uk, and we’ll be able to assist in any way that we can.