SEISS 4th payment date: When can you apply for SEISS 4? HMRC update
Martin Lewis grills Rishi Sunak over SEISS timetable
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SEISS has already given out three payments to the self-employed, with the last grant closing at the end of January. While the fourth grant has been announced alongside a fifth spanning July to September, many self-employed have been left in the dark about next steps. Workers who meet the criteria of the next grant, which includes submitting a self-assessment tax return for 2020/2021, will be able to claim 80 percent of their average monthly trading profits up to a maximum of £2,500 until July, when the fifth and final round aims to wean people off the Government-granted support as the economy begins opening up again.
Who can claim SEISS 4?
To be eligible for the fourth grant you have to be a self-employed individual or a member of a partnership.
To work out your eligibility, HMRC will look at your 2019 to 2002 self-assessment tax return.
Your trading profits have to be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on your 2019/2020 self-assessment tax return, HMRC will look at tax years; 2016/2017; 2018/2019; 2019/2020.
You must have also traded in both tax years:
- 2019 to 2020 and submitted your tax return by March 2, 2021
- 2020 to 2021
You must also either be currently trading but are impacted by reduced demand due to the pandemic or have been trading but are temporarily unable to because of covid.
You also have to declare that:
- You intend to continue to trade
- You reasonably believe there will be a significant reduction in your trading profits due to reduced business, capacity, demand or inability to trade due to coronavirus.
When can you apply for SEISS 4?
So far, not much detail has been issued about SEISS 4 and when people can apply for the money.
However, the Gov.UK website and HMRC have said the fourth grant will be available from “late April until May 31, 2021”.
While the last few grants have been left up to the self-employed to apply whenever they see fit within the deadline, things have changed a bit with the fourth.
If you are eligible to claim, HMRC will contact you directly sometime in mid-April to give you a personal claim date.
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Once you have this date, you’ll be able to make a claim anytime from then until May 31, when the scheme closes.
The Government says there will be more guidance about the fourth grant “in due course”, but this is a good starting point for the self-employed who can start thinking about their claim.
In terms of the fifth grant which lasts until September, claims will have to be made later down the line.
If you’re eligible for the fifth SEISS round of payments too, you will be able to make a claim from late July.
HMRC or the Government hasn’t confirmed whether the same rules will apply in regards to the payment claim date issued to claimants.
The amount of the fifth grant does, however, change as the economy tries to get back in shape.
The fifth grant will be worth 80 percent of three months’ trading profits, capped at £7,500 for those with a turnover reduction of 30 percent or more.
The grant will be worth 30 percent of three months’ average trading profits, capped at £2,850 for those with a turnover loss of less than 30 percent.
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