SEISS: As third support grant closing date draws near, what do we know about SEISS FOUR?

Image credit: HM Treasury (Flickr CC2.0)

From taxi drivers to hairdressers, self-employed workers have been able to make their claims for the third vital Self-Employed Income Support Scheme (SEISS) grant since it went live on 30 November.

As the Christmas period has passed, those that have yet to make a claim have now only until 29 January 2021 to make the claim.

Support for millions of workers through the third SEISS grant will cover November to January and will be calculated at 80% of average trading profits, up to a maximum of £7,500.

For those eligible to receive the grant they do not need to repay the funding, but the grant will be subject to Income Tax and self-employed National Insurance. The SEISS payments must be reported on their 2020-21 Self Assessment tax return.

To make a claim for the third grant the claimant’s business must have been impacted by coronavirus on or after 1 November 2020.

According to details released by HM Treasury, all claimants must keep a copy of all records in line with normal self-employment record keeping requirements. This includes the amount claimed and the grant claim reference.

HM Treasury are also asking those eligible for the grant to keep any evidence that their business has had REDUCED DEMAND due to coronavirus at the time they made the claim.

If the claimant’s business is temporarily UNABLE to trade they also must keep evidence.

Struggling self-employed workers will also have one eye on a confirmed fourth SEISS grant covering February 2021 to April 2021. According to HM Treasury sources 'further details, including the level of the fourth grant' will be set out in 'due course'.

Last week Labour’s Shadow Chancellor Anneliese Dodds called on Chancellor Rishi Sunak to make an urgent statement to Parliament on the economic support for the new England-wide lockdown, including the confirmation that the next Self Employed Income Support Scheme will be set at 80%.