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.

Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.