SEISS grant 4: When is the next SEISS payment due? Is SEISS taxable?

Martin Lewis grills Rishi Sunak over SEISS timetable

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The Self-Employment Income Support Scheme (SEISS) has been extended five times since the onset of the coronavirus pandemic. The scheme has thus far offered three grants to eligible claimants. Soon the fourth and fifth grants will be made available this year.

The Self Employment Income Support Scheme (SEISS) was introduced in 2020 by Chancellor Rishi Sunak in a bid to help self-employed workers in Britain amid the coronavirus pandemic.

The SEISS grant has now been extended several times and will be issued for a fifth grant this year.

The grant is designed to help those adversely affected by the crisis and was originally announced on March 26, 2020, to those who had been impacted on or before July 13, 2020.

A second grant was issued for businesses impacted on or after July 14, 2020.

On September 24, 2020, a further extension to the SEISS scheme was announced under which a third and fourth grant would be provided.

The third grant notionally covered the three-month period from November 1, 2020, to January 29, 2021.

The fourth and fifth grants were announced last month and are due to launch this year.

Speaking in the House of Commons on March 3, Mr Sunak said: “We will continue to do whatever it takes to support the British people.”

When is the next SEISS grant due?

The fourth grant is due imminently, with experts expecting the grant to launch in late April.

This grant will cover the months of February, March and April and will be worth up to £7,500, which is the same as the first and third grants.

The SEISS grant has now been widened so it will include 2019/2020 tax returns, meaning around 600,00 new self-employed workers will be eligible for the scheme.

Self-employed workers will be able to claim 80 percent of three months’ worth of average trading profits.

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The fifth SEISS grant is due to cover the five-month period from May to September 2021.

But this payment will still only cover three-months’ worth of average trading profits.

This means SEISS grant 5 will either be worth 30 to 80 percent of average monthly trading profits which equates to £2,850 to £7,500 for each of the aforementioned amounts.

How much a claimant receives for SEISS grant five will depend on their business’ turnover.

Is SEISS taxable?

SEISS grants are classed as taxable income which means they will be subject to normal taxation including Income Tax and National Insurance contributions.

All SEISS grants received in the 2020/2021 tax year will be taxed in that same year, with the exception of partnerships.

Where a partner receives SEISS payments in 2021/2021 and retains them all, the partner will be taxed on the total of their share of the partnership profits plus the SEISS payments received in 2020/2021.

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