Am I eligible to claim this grant?
To be eligible for the fourth grant you must be a self-employed individual or a member of a partnership.
The biggest change with the fourth grant in comparison to the previous grants, is for those who were not previously eligible. The fourth grant is based on your 2019/20 tax return, which means you may now be eligible if;
You must also declare that you intend to continue to trade, and you reasonably believe there will be a significant reduction in your trading profits due to coronavirus.
If you were eligible for the previous 3 grants you will certainly be eligible to claim again providing you meet the above criteria.
However, if you are not eligible based on your 2019/20 tax return, don’t panic as your previous years tax returns will be taken into consideration.
What does the fourth grant cover?
The fourth instalment of the scheme with provide a taxable grant at 80% of 3 months average trading profits, this will be paid out in a single instalment but will be capped at £7,500 in total.
For example, if for the 2019/20 year your profit was £15,000 you may be eligible for a grant of £3,750.
How do I claim?
As the 2019/20 Self-Assessment tax returns have been recently submitted, the online claims service will be available from late April until 31st May 2021.
HMRC will contact you in mid-April to give you your personal claim date. This will be the date that you can make your claim from.
Will there be further support?
There will be a fifth and final grant covering May to September.
This will be available to claim from late July if you are eligible to do so.
The amount of the grant this time will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
This will be worth 80% of 3 months average trading profits, with the maximum claim being £7,500, for those with a turnover reduction of 30% or more.
However, if your trading profits were reduced by less than 30% your claim will be worth 30% of 3 months average trading profits capped at £2,850.
Further details of the fifth grant are yet to be released.
If you are still unsure or need any advice and guidance please contact us, we are here to help you. Alternatively HMRC have detailed on their website all of the financial support which you might be eligible for. Please click here to visit HMRC.