Budget 2021 – Details of the fourth and fifth SEISS announced
03 March 2021
The long-awaited details around the fourth SEISS were confirmed in today's budget alongside the announcement of a fifth and final grant.
The fourth SEISS grant will be paid at 80% of three months’ average trading profits, which as before, will be made in a single instalment and capped at £7,500 in total. This grant will cover the period February 2021 to April 2021, and eligible applicants can make a claim from late April. The eligibility for the fourth grant differs to that previously in that Self-employed individuals must have filed a 2019- 20 Self-Assessment tax return to be eligible. This will mean that over 600,000 individuals may now be newly eligible for SEISS, including many new to self-employment through the tax year 2019- 20. All other eligibility criteria will remain the same as the third grant with further details will be published in due course.
The government announced that there will be a fifth and final SEISS grant which will cover the period May 2021 to September 2021. Unlike the previous grants, the value of the grant will be determined by a turnover test, in a bid to ensure that support is targeted at those who need it the most. People whose turnover has fallen by 30% or more will continue to receive the full grant of 80% of three months’ average trading profits, again, capped at £7,500, however, those whose turnover has fallen by less than 30% will receive a reduced value of 30% grant, capped at £2,850. Applications to the fifth and final grant can be made in late July.
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