The online gateway for the fourth SEISS grant applications has now opened. The fourth grant covers the months February, April, and March 2021, and can be claimed if the coronavirus has caused a significant reduction in trading profits for that period.

In order to claim, a business must confirm they have a reasonable belief that the profits for the period will be significantly affected. HMRC gives the following contrasting examples of when this will be the case:

Eligible. A cafe owner has fewer customers due to government restrictions and is only allowed to offer take-away service, which reduces her takings. She reasonably believes this will significantly reduce her trading profits. She is eligible to claim the fourth grant.

Not eligible. A cafe owner has fewer customers due to government restrictions on households mixing, which initially reduces her takings. She increases her prices and believes her trading profits will not reduce significantly, so she is not eligible to claim the fourth grant.

Further helpful examples are available here.

A very important difference with this tranche of grant is that where a tax return for 2020/21 is amended, the trader must notify HMRC if their entitlement to SEISS is reduced by more than £100.

Businesses should already have been contacted if they are eligible for the grant, as HMRC is basing the information on the 2019/20 and 2020/21 tax returns. The letter will detail the earliest date the business can make the application via the online gateway. These have been staggered to ease the demand on the system. The business must apply directly here. An accountant or tax advisor cannot do this on their behalf, as this may trigger a fraud warning.

If a business has not received a letter from HMRC detailing their claim date, but they believe they are eligible, the SEISS helpline should be used to contact HMRC on 0800 024 1222. The deadline for claims is 1 June 2021.