COVID-19: Understanding the claims process for the newly self-employed seeking financial support from the government (2 of 2)

In a nutshell, the fourth SEISS is to be set at 80% of the trader’s average trading profits, capped at £2,500 per month. It will be paid in one lump sum for three months, giving self-employed traders a maximum amount of £7,500.

Applicants can access the claims portal via their own Government Gateway ID to apply for this grant which will be open from late April to 31 May 2021 provided the pre-verification checks have been completed.

Click here full details on how to submit your claim if you are self-employed.

From late July self-employed individuals can claim for the fifth and final grant covering May to September. However, the amount claimed will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.

The fifth grant will be worth:

• 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
• 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%.

Chris Bowles, a director at Old Mill’s Wells office adds ‘Whilst it’s good news that Mr Sunak announced the final extensions to the SEISS, it’s important to highlight that new claimants will need to take into account that, as with previous grants, they will be subject to both Income Tax and National Insurance Contributions that will ultimately need to be budgeted for in the usual way.

‘It’s important for people to bring their tax affairs fully up-to-date, rather than leaving everything until the last minute, as this information affects your eligibility, so it makes sense to be proactive in order to get a handle on it.

‘Also, the final grant has specific conditions attached around whether your turnover has dropped by the required 30% that’s needed to claim for the higher grant amount when it opens in July.

‘This can all be a bit confusing for business owners trying to work their way through what can be a bit of a minefield for the first time so I would urge people to speak to their adviser wherever possible.’

For further information please contact your usual Old Mill adviser or click here…