HMRC have published further guidance in relation to the fifth grant. A summary of this is provided below:-
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, HMRC will 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, HMRC will 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.
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 the end of June 2021 to help you work out how your turnover was affected.
How much you’ll get
|Turnover reduction||How much you’ll get||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|
When you can claim
The online claims service for the fifth grant will be available from late July 2021. If you’re eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from.