Next Tuesday, 1st June marks the deadline for claiming the fourth grant under the government’s coronavirus Self Employment Income Support Scheme (SEISS).
The fourth grant covers the period from 1 February to 30 April 2021 and is for 80% of trading profits up to a maximum of £7500 for an eligible business.
HMRC should have contacted you if you are eligible for the grant based on your previous tax returns. However, to be eligible for this grant, a business must also confirm that it has been significantly affected by Covid-19 during the period from 1 February to 30 April. A business that claims the grant but which is not eligible to do so (for example because it has not been significantly affected) is liable to pay back the grant and may also be fined by HMRC.
HMRC have provided full guidance and also examples of what they would consider being a significant impact from covid-19.
Individuals who are eligible to claim the grant should click here
The government announced in March that there would be a fifth grant for affected businesses covering the period from May to September, however full details remain to be published.
Although the furlough scheme remains in place until 30 September, we would like to remind all businesses that they will have to make a contribution to furloughed employees’ wages from 1 July 2021.
In July, the maximum claim under the furlough scheme will be 70% of an employees’ earnings up to a maximum of £2187.50 per month. The furloughed employee will still be entitled to a minimum of 80% of their ‘normal’ earnings so the employer will have to contribute 10%. The employer will also have to pay employer NIC and pension contributions.
In August and September, the maximum claim under the furlough scheme will be 60% of an employee’s earnings up to a maximum of £1875 per month. The furloughed employee will still be entitled to a minimum of 80% of their ‘normal’ earnings so the employer will have to contribute 20%. The employer will also have to pay employer NIC and pension contributions.
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