COVID-19 Update – 12 March – Fourth and Fifth SEISS Grants

In the Budget update, the chancellor confirmed SEISS grants four and five and stated the criteria will include 2019/20 self-assessment tax return data and widen to cover hundreds of thousands more taxpayers.

In order to qualify for the fourth and fifth SEISS grant, you must have filed your 2019/20 self-assessment tax return by 2 March. The criteria is otherwise unchanged, as the government resisted calls to change the £50,000 income limit and 50% test.

The tests of eligibility are first applied to 2019/20. If the tests are failed, they are then applied to the four years 2016/17 – 2019/20, where available.

HMRC have published a factsheet pending more detailed guidance on these grants.

Fourth SEISS Grant

The fourth grant will cover the period February to April and has been set at 80% of 3 months average trading profit, capped at £7,500.

HMRC will contact potentially eligible taxpayers in mid-April and applications will be open from late April to the end of May 2021.

Fifth SEISS Grant

The fifth grant will cover the period May to September and again has been set at 80% of 3 months average trading profit, capped at £7,500 for those whose turnover has reduced by 30% or more.

Those with a turnover reduction of less than 30% will receive a grant based on 30% of three months average trading profits, capped at £2,850.

The applications portal is expected to open for the fifth grant in late July.

Find out more