Check if a grant can be claimed through SEISS v4

  • By Mark Morton
  • 21 April 2021 10:10

HMRC have released more on claiming the fourth grant, which is available from late April 2021.

HMRC will contact businesses in mid-April to give them a date that they can make their claim from and a claim must be made on or before 1 June 2021.

To be eligible for the fourth grant, the business must have traded in both tax years:

  • 2019/20 and submitted the tax return on or before 2 March 2021; and
  • 2020/21.

The business must either:

  • be currently trading but impacted by reduced demand due to coronavirus; or
  • have been trading but are temporarily unable to do so due to coronavirus.

A declaration must also be made that the business intends to continue to trade and reasonably believes there will be a significant reduction in trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus between 1 February 2021 and 30 April 2021. It must keep evidence that shows how the business has been impacted by coronavirus resulting in less business activity than otherwise expected.

To work out your eligibility for the fourth grant, HMRC will look at 2019/20 where trading profits must be no more than £50,000 and at least equal to or more than non-trading income. If eligibility is not met at this stage, HMRC will look at 2016/17, 2017/18, 2018/19 and 2019/20.

The fourth grant is calculated at 80% of three months’ average trading profits but is capped at £7,500.

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