Treasury Directive Re Fourth SEISS Grant

HM Treasury has published a further Treasury Direction made under the Coronavirus Act 2020, ss. 71 and 76, which modifies and extends the effect of the Self-Employment Income Support Scheme (SEISS). The new Direction mainly deals with the expansion of the SEISS from 1 February 2021 to 30 April 2021, officially referred to as the SEISS Grant Extension 4 (SEISS 4). The online portal for making a claim will open in late April and HMRC is notifying taxpayers of the earliest date they can apply on a staggered basis. The final date for making a claim for the SEISS 4 will be 1 June 2021.

The self-employed will receive 80% of average trading profits for February, March and April 2021. This will mean a maximum grant for the three months of £7,500 made available to those who meet the eligibility requirements. The SEISS 4 grant is available to the newly self-employed who filed a 2019-20 tax return by midnight, 2 March 2021.

To be eligible for an SEISS 4 payment, self-employed individuals, including members of partnerships, must meet the following criteria:

(a) carry on a trade the business of which has been adversely affected by reason of circumstances arising as a result of coronavirus or coronavirus disease,
(b) have delivered a tax return for a relevant tax year on or before 2 March 2021,
(c) have carried on a trade in the tax years 2019-20 and 2020-21,
(d) intend to continue to carry on a trade in the tax year 2021-22,
(e) if that person is a non-UK resident or has made a claim under section 809B of ITA 2007 (claim for remittance basis to apply), certify that the person’s trading profits are equal to or more than the person’s relevant income for any relevant tax year or years,
(f) be an individual, and
(g) meet the stated profits condition.

A fifth and final grant covering the period from 1 May – 30 September 2021 will see those whose turnover has fallen by 30% or more continuing to receive the full 80% grant whilst those whose turnover has fallen by less than 30% will receive a 30% grant.