HMRC have confirmed the online application service for the fourth self-employed income support scheme (SEISS) is now open for claims to be submitted.
All applications must be submitted by the self-employed individual and cannot be handled by accountants or tax advisers. All claims must be submitted by 1 June 2021.
It is expected that up to 600,000 self-employed individuals will be able to apply for the grant.
To be eligible for the fourth grant you must be a self-employed individual or a member of a partnership.
Have trading profits of no more than £50,000 and these profits must be at least equal to or more than your non-trading income.
The grant amount is capped at £7,500 and will be set at 80% of three months’ average trading profits.
There is no requirement that an earlier SEISS grant needs to have been claimed to be able to claim the fourth grant.
This grant is not available to you if you trade through a limited company.
HMRC has also updated the guidance to clarify exactly what is meant by adversely affected by the pandemic, including providing several scenarios about how the definition is applied.
If you are impacted by reduced activity, capacity or demand
You must keep any evidence that your business has had reduced activity, capacity or demand due to coronavirus at the time you made your claim, such as:
- business accounts showing reduction in activity compared to previous years.
- records of reduced or cancelled contracts or appointments.
- a record of dates where you had reduced demand or capacity due to government restrictions.
If your business is temporarily unable to trade
You must keep evidence if your business has been unable to trade due to coronavirus, such as:
- a record of dates where you had to close due to government restrictions.
- NHS Test and Trace communications – if you have been instructed to self-isolate in-line with NHS guidelines and are unable to work from home.
- a letter or email from the NHS asking you to shield.
- test results if you have been diagnosed with coronavirus.
- letters or emails from your child’s school with information on closures or reduced hours.
Making a claim
To make a claim, applicants will need the following:
- Self-Assessment Unique Taxpayer Reference (UTR).
- National Insurance number.
- Government Gateway user ID and password.
- UK bank details including account number, sort code, name on the account and address linked to the account.
Only provide bank account details where a BACS payment can be accepted.
HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate and a penalty system is in place for claims found to be of this nature.
If an amendment to a tax return on or after the 3 March 2021 lowers the amount you are eligible for, HMRC must be informed within 90 days.