Self-employed workers have until Thursday 30 September to apply for a fifth instalment of financial Covid support from the government in 2021.
The self-employment income support scheme (SEISS) has been a lifeline for workers who have seen their monthly income battered by the coronavirus pandemic.
The fourth SEISS grant covered the period from 1 February 2021 to 30 April 2021 and paid 80% of a person’s average trading profits, up to £2,500 a month.
The fifth and final SEISS grant is now available for self-employed workers to apply for – but what period does it cover, how much is it and what’s the application process?
When can I apply for the 5th SEISS grant?
Mr Sunak revealed plans for a fifth SEISS grant in his March 2021 Budget statement.
The scheme is now open to applications from self-employed workers who have seen their income affected by Covid, to help cover losses during the pandemic and lockdown restrictions.
The fifth SEISS grant covers the five-month period from 1 May 2021 to 30 September 2021 and is widely understood to be the last instalment before the scheme winds down.
Mr Sunak said the government has helped support self-employed workers to the tune of £33 billion in all over the duration of the Covid crisis which began in March 2020.
How much is the 5th SEISS grant?
The fourth SEISS grant provided 80% of a self-employed worker's average monthly trading profits, up to the limit of £2,500 per month or £7,500 total over three months.
Support for the fifth SEISS grant is on the same level - 80% of average monthly profits, capped at £2,500 per month - if turnover has reduced by 30% or more over that time.
Claimants who endure smaller losses will receive 30% of average monthly trading profits.
The chancellor said: “As the economy reopens over the summer, it is fair to target our support towards those most affected by the pandemic.
“So people whose turnover has fallen by 30% or more will continue to receive the full 80 per cent grant. People whose turnover has fallen by less than 30% will therefore have less need of taxpayer support and will receive a 30% grant.”
Who is eligible for the 5th SEISS grant?
Claimants must currently be trading but are “impacted by reduced demand” or “temporarily unable to do so” due to Covid and the restrictions imposed to limit the spread of the virus.
The applicant must declare their intention to continue to trade or “reasonably believe there will be a significant reduction in your trading profits”.
There are specific circumstances which will affect eligibility such as having had a new child.
People cannot claim the grant if trading through a limited company or a trust.
How can I apply for the 5th SEISS grant?
The application process for the fifth grant is the same as that for the fourth.
Applications can be made through the government portal tax.service.gov.uk for the fifth SEISS grant, which is now open.
Applicants will need their Government Gateway user ID and password, National Insurance number, Self Assessment Unique Taxpayer Reference (UTR) and bank details.
It can take up to 10 working days for the money to be transferred to your account.
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