SEISS Grant 4 : HM Revenue and Customs (HMRC) recently updated its guidelines regarding the fourth Self-Employment Grant Support scheme (SEISS ) that will be begin accepting applications towards the end of April.
The fourth grant is for the period of February 1, 2021 through the 30th of April 2021. should you be eligible to receive financial assistance up to PS7,500 according to taxes you have filed. HMRC is expected to contact you in mid-April , to provide you with the date you will be able to claim the support starting.
This will be sent to you via mail, email or through the online service. You have to submit your claim before June 1, 2021.
HMRC guidelines also state that you must verify that you meet the other eligibility requirements when making your claim. Here is a brief step-by-step guide that will help figure whether you qualify for the scheme for claiming financial assistance.
Who is eligible to be claiming SEISS 4?
Guidance from GOV.UK states: “To be eligible for the fourth grant , you must be self-employed or part of the partnership. The grant is not available in the event that you do business through an LLC or trust.”
The tax year you are in must be made a trade during each tax period:
- from 2019 to 2020 and file your tax return by March 2, 2021.
- 2020-2021
You must either:
- You are currently trading, however you are being impacted by lower demand because of coronavirus
- Are trading, but have been in a position to not trade because of coronavirus
What does reasonable belief and’significant reduction’ of trading profits?
Based on a reasonable belief
To be eligible for your fourth award, you need to have a reasonable belief that you’ll be suffering a significant decrease in profits from trading because of a decrease in capacity, business activity demand, or inability to trade due to coronavirus from February 1 until April 30th 2021.
GOV.UK recommends “You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.”
The document states that ” HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.”
What does HMRC is referring to when it says “impacted by decreased capacity, activity and demand’
This can be applied to your business that has been affected by decreased production, capacity, or demand because of coronavirus.
For instance, you:
- You’re likely to have fewer customers or clients than you’d typically think, resulting in less activities due to social stigmatization or government restrictions
- Have you one or more contracts that were cancelled but aren’t being substituted
- Work was carried out in a reduced capacity due to disruptions to supply chain
The guideline clarifies in that “must not claim if the only impact on your business is increased costs” and offers the following example: when you’ve required the purchase of facial masks and cleaning products it is not taken as a decrease in demand, capacity or activity.
