Claiming the 4th Self employed Grant

You can now claim the 4th Grant – Are you Eligible?

The self-employed can now claim the fourth grant as part of the government’s Self-Employment Income Support Scheme. HMRC is in the process of sending out emails, letters and messages advising those who may be entitled to claim.

Here’s a breakdown of what you need to know:

  • The fourth grant covers the period 1st February 2021 to 30th April 2021.
  • The amount will once again be 80% of your average profits over 3 months, but this time the grant also takes your 2019/20 profits into account when calculating this.
  • As before, this grant is subject to tax and class 4 National Insurance; if you claim it, you must declare it on your 2021/22 tax return.
  • If it’s your first time claiming, you may be asked additional questions to confirm your identity. These can relate to information from your P60, passport, tax credit claim, credit file, payslips or previous tax returns.
  • If you’re eligible, you can claim via your Government Gateway account from the end of April until the 1st June 2021. If you haven’t got a Government Gateway account, you can create one here.

The eligibility criteria for the fourth grant are as follows:

  • You must be a self-employed individual or a member of a partnership.
  • You must have traded in both tax years 2019/20 and 2020/21 and submitted your tax return on or before 2nd March 2021.
  • You must be either currently trading but impacted by reduced activity, capacity or demand due to Covid-19, or temporarily unable to trade due to Covid-19.
  • You must declare that you intend to continue to trade, and that you reasonably believe there will be a significant reduction in your profits.

While the above criteria are relevant to most people, some circumstances can affect your entitlement to the scheme. For example, if your tax return is late, amended or under enquiry, if you’ve had a new child, if you’re a military reservist, or if you’re claiming averaging relief, these can all affect your eligibility. There’s a full list of guidance on the government website, found here.

The full government guidance on the fourth grant can be found here, and explains more about who is eligible and how much you’ll get and how to make your claim. It also includes information on other support available to the self-employed at this time.

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