Fourth Grant Instalment
Once again, a grant equal to 80% of 3 months’ average trading profits, capped at £7,500, will be available to eligible individuals. This fourth instalment covers the 3-month period 1st February 2021 to 30 April 2021.
There is quite a significant change to eligibility criteria for the fourth grant, with eligibility now based on the 2019/20 tax year or the four years covering 2016/17 through to 2019/20. This now brings in individuals who became newly self-employed in tax year 2019/20 and who previously did not qualify for the first three instalments of the scheme, provided they have filed self-assessment tax returns for 2019/20 tax year.
The value of the grant will now also be based on average trading profits over the last four tax years ending 2019/20, meaning this instalment could be higher or lower than previous grants received.
The online claims process will be available from late April through to 31 May 2021. As per previous claims, HMRC will contact eligible individuals to provide them with claim dates to login to their personal tax accounts and process their claim.
Fifth Grant Instalment
The fifth and final instalment will cover the period 1 May 2021 to 30 September 2021. The same eligibility criteria as above, will apply to the fifth instalment also.
However, the grant calculation will change somewhat, with the grant award being determined by how much an individual’s turnover has been reduced in the tax year 2020/21
More details will be released on this grant in due course, with the online claims process for this grant expected to begin from late July.