A fifth and final grant, covering May 2021 to September 2021, will be open to claims from late July 2021.
Only those who can demonstrate a further fall of 30% or more in the year to April 21 will be eligible for previous level of grants to a maximum of £7,500.
Below that the grant available is likely to around a third of the previous level to a maximum of £2,850.
How the fifth grant is different
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
HMRC will provide more information and support by early July to help you work out how your turnover was affected.
How much you’ll get
Turnover reduction Maximum grant
30% or more 80% of 3 months’ average trading profits £7,500
Less than 30% 30% of 3 months’ average trading profits £2,850
The grant is taxable and will be paid out in a single instalment.
Guidance for claiming the grant will be available by the end of June 2021.
Who can claim
To be eligible for the grant you must be a self-employed individual or a member of a partnership.
When you must have traded
You must have traded in the tax years:
2019 to 2020 and submitted your tax return on or before 2 March 2021
2020 to 2021
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
Your tax returns
To work out your eligibility for the fifth grant, we’ll first look at your 2019 to 2020 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on your 2019 to 2020 tax return, we’ll then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.
Deciding if you can claim
You must declare that:
you intend to continue to trade
you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.
The online claims service for the fifth grant will be available from late July 2021.