Covering the period from the 1st February 2021 to the 30th April 2021, the fourth grant will be available from late April 2021. Claims must be made on or before the 1st June 2021.
In mid April, HMRC are expected to contact taxpayers who, based on their tax returns are eligible. Taxpayers will need to confirm that they meet the other criteria.
The grant will be 80% of 3 months’ average trading profits, paid out in one single payment, the grant is capped at £7,500. This is based on the trading profits in the 16/17, 17/18, 18/19 and 19/20 tax years.
The grant, just like all other grants is subject to Income Tax and self-employed National Insurance Contributions and must be reported on the 2021 to 2022 Self Assessment tax return. The grant also counts towards the annual allowance for pension contributions.
This grant covers the period 1st February 2021 to the 30th April 2021. It is available to:
- Self-employed individuals and members of a partnership
- Who traded in both 2019/20 and 2020/21 tax years
- The 19/20 tax return was submitted on or before the 2nd March 2021
- Intends to continue to trade
- Trading profits must not exceed £50,000 and at least equal to non-trading income
Claims can be made if either:
Temporarily unable to trade due to COVID;
Trading has continued but with reduced demand.
Being unable to trade includes:
- Tested positive for COVID and unable to work;
- Shielding or self-isolating in-line with NHS guidelines and unable to work from home;
- Closed due to government restrictions;
- Cannot work due to child care responsibilities.
Having to self-isolate after foreign travel is not covered.
Reduced demand can include:
- Fewer customers than normally expected, due to social distancing or government restrictions, resulting in reduced activity;
- Contracts cancelled and not replaced;
- Able to carry out less work due to supply chain disruption.
Claims cannot be made if the only impact is increased costs such as the purchase of face masks and cleaning supplies.
The claimant must confirm that they have a reasonable belief there will be a significant reduction in trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus between 1st February 2021 and 30th April 2021. For this purpose, trading profits does not include any other coronavirus scheme support payments received.
Claims cannot be made if:
- Prices have been increased so that, despite a fall in quantity sold, there is no decline in profits;
- Premises had to be closed for a short period but there will be no significant reduction in trading profits;
- The individual was unable to work for a short period but contracts could be rearranged so there was no significant reduction in trading profits;
- The individual does not seek to replace lost work.
Records should be retained showing how the business has been impacted by coronavirus resulting in less business activity than otherwise expected.