Earlier this year, it was announced that self-employed workers will be able to claim two more grants under the Self-Employment Income Support Scheme (SEISS). This will cover the period from 1 February 2021 until the end of September 2021.
The fourth taxable grant covers the three-month period from 1 February to 30 April 2021.
As with two of the previous SEISS grants, it’s worth 80% of three months’ average trading profits, paid out in a single instalment of up to £7,500. Applications open at the end of April.
The fifth grant covers May to the end of September 2021. This will differ from previous grants because the amount individuals will be able to claim depends on loss of income.
Workers whose turnover has fallen by at least 30% can still apply for a grant of up to 80% of profits, up to £7,500 in total.
Those whose income has fallen by less than 30%, can apply for a grant of 30% of trading profits, up to a cap of £2,850. Applications for the fifth and final grant will open in July.
Around 600,000 self-employed missed out on previous grants because they had recently started working for themselves and had not filed a tax return to prove their income status.
Anyone who filed a 2019/20 tax return through self-assessment on or before the extended deadline at midnight on 2 March 2021, will now be eligible for the new grants.
Given the volume of people who stand to qualify, HMRC is writing to around 100,000 of those asking them to complete pre-verification checks in a bid to prevent fraud.
Taxpayers will receive a letter informing them to expect a phone call from HMRC in the next 10 working days, in which they will be asked to confirm their email address and agree to receive a secure Dropbox link.
They then have two days to upload one form of identity and three months of bank statements to show their business activity before the link expires. Please remember to stay vigilant when it comes to scam emails and phone calls from fraudsters claiming to be from HMRC.
If you would like further information about the SEISS or are concerned you’ve received a scam communication, please get in touch with PKB and we’ll be able to advise.
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