Self employed grant: how to claim the 4th SEISS payment from HMRC as government gateway opens

The UK government announced in November last year that there would be a fourth grant available to the self-employed in order to help with the impact of the Covid-19 pandemic.

But what does the fourth grant include, who is eligible and how can you claim?

Here’s what you need to know.

How much is the fourth self employment grant?

The fourth Self-Employment Income Support Scheme (SEISS) grant will be set at 80 per cent of 3 months’ average trading profits and will be paid out in a single instalment, capped at £7,500.

This grant will also take into account 2019 to 2020 tax returns and will be open to those who became self-employed in the tax year 2019 to 2020.

However, eligibility for the scheme will now be based on submitted 2019 to 2020 tax returns, which may affect the amount of the fourth grant. This could be higher or lower than previous grants you may have received.

Who is eligible to claim the grant?

In order to be eligible for the fourth grant you must be a self-employed individual or a member of a partnership.

To work out your eligibility, the grant will look at your 2019 to 2020 Self Assessment tax return.

Your trading profits must also not be more than £50,000 and at least equal to your non-trading income.

However, if you’re not eligible for the grant based on your 2019 to 2020 Self Assessment tax return, the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020 will instead be looked at.

You must also have traded in both tax years:

- 2019 to 2020 and submitted your tax return by 2 March 2021

- 2020 to 2021

You must also either:

- be currently trading but are impacted by reduced demand due to Covid

- have been trading but are temporarily unable to do so due to Covid

You must then also declare that you intend to continue to trade, and, according to the policy paper, that you “reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus.”

How do I claim the fourth grant?

The online claims service for the fourth grant will be available from late April 2021.

HMRC said if you’re eligible for the grant based on your tax returns, then they will contact you in mid-April “to give you a date that you can make your claim from.” This will be given to you either by email, letter or within the online service.

You will need to confirm you meet other eligibility criteria when you make your claim, and you must make your claim on or before 1 June 2021.

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