The Self-Employment Income Support Scheme (SEISS) was extended to cover the majority of 2021. Three grants have opened and closed for applications during the coronavirus pandemic and fourth grant applications are currently open. The deadline to apply for the fourth grant is June 1 and after the deadline passes, a fifth grant is expected in due course.
Who will be eligible for SEISS grant five?
The full eligibility criteria for the fifth SEISS grant has not been announced yet by the Government.
However, Lucy Cohen, co-founder of Mazuma, explained to Express.co.uk that several people who were not eligible for the first few grants are now expected to be eligible for the fifth grant.
Ms Cohen said: “Thankfully, 600,000 more people will be eligible to apply for SEISS five.
How much will the fifth grant be worth?
Amanda Lennon, employment partner at Spencer West, told Express.co.uk: “The fifth SEISS grant will cover the period from May to September and I expect the full guidelines to be published by the Government imminently.”
Ms Lennon added: “ If you have seen your turnover/sales reduce by 30 percent or more the grant will be for 80 percent of your average monthly trading profits, capped at £7,500.
“If your losses are less than 30 percent, the grant will be worth 30 percent of three months’ average trading profits, capped at £2,850.”
The fifth SEISS grant will be worth three months’ worth of average monthly trading profits, but the grant period for SEISS grant five is longer than previous grants have covered.
Andy Vessey, Head of Tax at Kingsbridge Contractor Insurance, explained to Express.co.uk: “[The fifth grant] can be claimed from late July 2021 and is intended to cover May to September 2021.
“However, the grant will only be calculated based on 80 percent of three months’ average profits, leading to some criticism that the fifth grant is missing two months.”
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“Both the 2021 and 2022 tax returns will include boxes for SEISS grants to allow them to be reported separately and cross checked by HMRC.
“The Government has invested over £100million in establishing a Covid taskforce of 1,265 HMRC staff to tackle the estimated £3.5billion fraudulent claims of Covid support packages, the Revenue will be looking at SEISS claims very closely.
“It is therefore imperative that individuals keep evidence to support their claim in the event that they are challenged by HMRC.”