Treasury issues guidance on the final two self-employed grants

Tax Comments Off on Treasury issues guidance on the final two self-employed grants

More help for the self-employed has been announced, with the final two income support grants available until the end of September 2021.

The fourth taxable grant available through the self-employed income support scheme (SEISS) covers a three-month period from 1 February to 30 April 2021.

As with two of the previous SEISS grants, the fourth grant is worth 80% of three months’ average trading profits, paid out in a single instalment of up to £7,500.

The fifth grant covers May to the end of September 2021, but the amount available depends on loss of income.

Workers whose turnover has fallen by at least 30% can still apply for a grant for up to 80% of profits, up to £7,500 in total.

Those whose income has fallen by less than that can apply for a grant of 30% of trading profits, up to a cap of £2,850.

Claims for the fourth grant can be made towards the end of this month, while claims for the fifth grant will open in July.

Around 600,000 people 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.

But those who filed a 2019/20 tax return through self-assessment on or before the extended deadline at midnight on 2 March 2021 will 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.

Contact us for advice on the SEISS.