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Coronavirus support schemes directions

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The Treasury has issued a formal direction setting out the terms for the fourth claim under the SEISS. The direction covers claims for the period from 1 February to 30 April 2021.

The fourth taxable grant is worth 80% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits and capped at £7,500 in total. Applications for the fourth grant will open at the end of April 2021. To be eligible for the fourth grant, taxpayers must be self-employed or a member of a partnership and must have traded in the last two tax years and have suffered ‘a significant reduction in trading profits’ due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period.

The Treasury has also made a direction setting out the legal framework, and HMRC’s responsibilities, for the coronavirus support scheme for working households receiving tax credits. Under the scheme, a single coronavirus support payment of £500 will be made to qualifying individuals whose employment income has been adversely affected by the impact of coronavirus. HMRC is responsible for making the payment ‘as soon as reasonably practicable in the tax year 2021/22’.

Issue: 1527
Categories: News