If you are a self-employed person or a member of a partnership and coronavirus has adversely impacted your business, you may be entitled to a new grant “the Fifth Grant”. In this note you will find more details regarding the so called Fifth Grant.
The Fifth Grant, for the self-employed and partners
In March 2020, with the advent of COVID-19 and its consequences, the UK Government announced a subsidy for the self-employed, called the Self-Employed Income Support Scheme. You can find more information about this here. The Fifth Grant is a further phase of the Self-Employed Income Support Scheme.
The Fifth Grant is available to supplement your income for the 2019/2020 and/or 2020/2021 tax years. To claim the Fifth Grant you must:
- be self employed or a member of a partnership
- must have traded in the tax year 2019 to 2020 (and have submitted your tax return by 2 March 21)
- must have traded in 2020 to 2021
You must also either
- be currently trading but be adversely impacted by COVID or
- have temporarily stopped trading because of COVID.
Your 2019/20 tax return
To be eligible for the Fifth Grant your trading profits in the tax year 2019/2020 cannot be more than £50,000 and must be at least equal to your non-trading income in the year. However, if you are not eligible based on the 2019/2020 tax year, you may still be eligible, based on earlier tax returns.
To claim the Fifth Grant you will also need to declare that:
- you will continue to trade; and
- your profit will be reduced because of COVID-19 for the period May 2021 to September 2021.
Clearly, HMRC expects an honest assessment from you regarding your belief that your profits will be reduced because of COVID 19 and you must keep evidence that COVID-19 has impacted on your business.
The amount you can claim will depend by the reduction of turnover from April 2020 to April 2021.
|Turnover reduction||How much you will get||Maximum grant|
|Less than 30%||30% of the 3 months average trading profits||£7,500|
|30% or more||80% of the 3 months average trading profits||£2,850|
When can I apply for the fifth grant?
If you are eligible to claim the grant, HMRC will provide you with more information on the scheme by the end of July 2021. HMRC will give you an application date for your application. .
If you need more information or are not contacted by HMRC – Contact us
Overview If you are a self-employed person o […]