Search
  • scottishliveevents

SEISS Round 4 - do I qualify and if so how much do I get?




 



Scottish Live events Network - SEISS 4 Explainer


SEISS 4 - can I get it and if so how much?


SEISS round four covers the months of Feb-April. It comes out at the end of April (Thanks Westminster) and is available until 31st May, HMRC will begin contacting eligible applicants from mid-April with an application time slot, the same as previous grants.


Both the eligibility criteria (“can I get it”) and the award calculator (“how much do I get”) have changed from rounds 1-3. Eligibility and award calculation are mutually exclusive - once you are eligible it is a different calculation to work out your award


This FAQ does not constitute financial advice, it is subject to change. If in doubt you should consult an accountant, financial advisor or HMRC. This information is correct as of 05/02/2020 we will endeavour to update this post as soon as new information changes.



Eligibility Criteria (the “can I get it” bit).


You must have filed a 2019/20 tax return by midnight on the 2nd March 2021.


The first thing HMRC will do is look at the last tax year (2019/20)

  • Is your Self Employed profit £50,000 or under?

  • Is the Self Employed profit (pre tax) figure 50% or more of the average total income figure from all sources including, Self Employment, PAYE, pension, investments, dividends, property income

  • Were you trading in the years 2019/20 and 2020/21 and plan to continue trading?


If you answer yes to all of these points then you qualify for SEISS and you can go and calculate your award.


If not then HMRC will take up to the last four years tax returns (from 2019/20 back to 2016/17 or as many as you have in that four year period) and work out your average income for those years. They will also work out your average total income for those years.


  • Is the average Self Employed profit £50,000 or under?

  • Is the average Self Employed profit (pre tax) 50% or more of the average total income figure from all sources including, Self Employment, PAYE, pension, investments, dividends, property income

  • Were you trading in the years 2019/20 and 2020/21 and plan to continue trading?

  • If the answer to these is yes then you qualify and can go and calculate your award.


Do I need to prove that I've been affected by coronavirus? Simple answer is yes. Longer answer: you will likely have this automatically by a drop in your accounts turnover and profit and reduced invoices this could be added to by emails of cancelled work.


NOTE:


You do not need to have claimed, or be eligible for any of the previous SEISS grants.


You can keep working at another job if you claim the grant and keep working in your Self employed work.


You can get universal credit though be aware you need to declare you SEISS payment in your monthly income and expenditure form.


The SEISS payment is classed as income so will need to be added to your tax return and if you go over the £12,500 threshold you will need to pay tax and also your National insurance contribution and if applicable student loan as well as tax on account payments etc.


Do I need to prove that I've been affected by coronavirus? Simple answer yes. Longer answer: you will likely have this automatically by a drop in your accounts turnover and profit and reduced invoices this could be added to by emails of canceled work.



Award Calculator (the “how much do I get” bit):


To calculate how much SEISS you will receive


Add up your profit (pre tax, post expenses) from the years of 2019/20, 2018/19, 2017/18, 2016/17. (or as many of those years as you have if more recently self employed)


Divide this number but the amount of years you are counting.


Divide the answer by 4.


Now multiply by 0.8. This is your SEISS payment for round 4 capped at £7500



Outlier Scenarios that might affect your eligibility:


You have told HMRC that you are no longer trading after your 19/20 tax return and then have resumed trading. We suspect that you will still be eligible as you are able to tick the boxes that you have traded in 20/21 and intend to in 21/22


It is worth noting that MP’s have direct access to HMRC and can ask questions on your behalf and will be guaranteed an official answer.



SEISS round 5:


Will be available from late July - here's what we know so far:


It will be worth three months of average profits. We don't know how the average profit will be calculated yet. But the period the grant covers is five calendar months - May to September - which means the self employed seem to be two months' short of help compared to those on the furlough scheme (the same thing happened in 2020 too).


The value of the fifth grant will be determined by a turnover test comparing the 20/21 tax year to your 19/20 tax return:


- If your turnover has fallen by 30% or more - you'll be able to claim the full grant worth 80% of three months’ average trading profits, capped at £7,500.


- If your turnover has fallen by less than 30% - you'll be able to claim a grant worth 30% of three months' average trading profits, capped at £2,850.


We do not yet know if previous SEISS grants will be included in the turnover calculation for SEISS 5 Grant award percentage


Exact eligibility criteria has not been announced. We do not yet know any details of the eligibility criteria.



Links to references for original information :


SEISS on Govt website :https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension


HMRC Email to previous applications :

https://content.govdelivery.com/accounts/UKHMRCED/bulletins/2c4b01a


Red book ( Budget 2021 document Page 45, Paragraphs 2.15 and 2.16 ) : https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/966868/BUDGET_2021_-_web.pdf


Martin Lewis SEISS advice : https://www.moneysavingexpert.com/news/2020/04/self-employed-help-coronavirus/



SLEN


If you have found the work of The Scottish Live Events Network useful please consider joining us. The more members we have the more we can do to represent the industry. Go to https://bectu.org.uk/join/ and include SLEN in your job title to be placed directly into the branch.


1,032 views0 comments