SEISS grant 4 extension – 600,000 self-employed workers to become eligible for cash grant | Personal Finance | Finance

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A fourth grant from the Self-Employment Income Support Scheme (SEISS) will be available to claim from April, covering the months February to April 2021. This was announced by Rishi Sunak last year, however details have been kept under wraps over the past few months.

Further support for self-employed workers is expected to be announced today, with more than 600,000 people – many of whom became self-employed in the 2019/20 tax year – to become eligible for cash grants.

According to reports, the fourth grant will be worth 80 percent of three months’ average trading profits up to £7,500.

It’s also understood the Chancellor will set out details of a fifth grant.

The change in the rules, which opens eligibility up to hundreds of thousands more people, comes as tax return data for 2019/20 is now available.

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Previously, Mr Sunak faced criticism that newly self-employed people were unable to benefit from the scheme.

Ahead of the Budget, he said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.

“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”

The Chancellor is expected to tell MPs today: “First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis.

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“Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that.

“And, third, in today’s Budget we begin the work of building our future economy.”

IPSE (the Association of Independent Professionals and the Self-Employed) has said it is “delighted” by the news, calling it a “tremendous relief” for freelancers in this group.

IPSE also welcomed the announcement of a fifth round of SEISS.

Derek Cribb, CEO of IPSE (the Association of Independent Professionals and the Self-Employed), said: “After almost a year, this support will be a tremendous relief to hundreds of thousands of self-employed people who could not access SEISS because they had not yet filed a full tax return.

“We are delighted that the government has heeded our calls to get support to this struggling group.

“It is also very welcome that the Chancellor will be introducing a fifth SEISS grant for the UK’s self-employed.

“We hope these generous and welcome moves are early signs of more positives for freelancers in this Budget: it’s crucial that the Chancellor does not forget that there are other large groups of freelancers currently excluded from support – particularly sole directors of limited companies.”

The eligibility rules for the third grant differed to previous grants.

On the third grant, the Government said: “To be eligible for the third grant you must be a self-employed individual or a member of a partnership.

“You cannot claim the grant if you trade through a limited company or a trust.

“If you claim Maternity Allowance this will not affect your eligibility for the grant.

“You must have traded in both tax years:

  • 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • 2019 to 2020

“You must either:

  • Be currently trading but are impacted by reduced demand due to coronavirus
  • Have been trading but are temporarily unable to do so due to coronavirus

“You must also declare that:

  • You intend to continue to trade
  • You reasonably believe there will be a significant reduction in your trading profits.”





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