Applications for the second grant are now open.

Claim from the 17 August 2020 – Closing Date for claims is 19 October 2020

  • 70% of average 3 months profit (capped at £6,570)
  • Must be adversely affected on or after 14 July 2020
  • Must have submitted a tax return for 2018/19 by 23 April 2020
  • Must have traded in 2018/19 and 2019/20
  • Intend to continue trading in 2020/21
  • Profits are less than £50k in 2018/19 (or less than £50k on average for the previous 3 tax years)
  • Self employed profits must be more than 50% of total income
  • Grants are subject to income tax and Class 4 NIC and must be reported on 2020/21 Tax Return

Examples of adversely affected

HMRC Guidance:

You are unable to work because you:

Are shielding

Are self-isolating

Are on sick leave because of coronavirus

Have caring responsibilities because of coronavirus

You’ve had to scale down or temporarily stop trading because:

Your supply chain has been interrupted

You have fewer or no customers or clients

Your staff are unable to come in to work

One or more of your contracts have been cancelled

You had to buy protective equipment so you could trade following social distancing rules

To be eligible you must have been adversely affected by Coronavirus on or after 14 July 2020. Please see below the HMRC examples of this in case the claim is queried.

If you have any queries please contact us: info@four-m.co.uk

Example 1:

Affected both up to and after 13/14 July 2020

Pam is self-employed running a small restaurant.

20 March -restaurant shuts, staff furloughed

15 April -opens for takeaway food only

Before 4 July –prepares for re-opening for dine-in customers

4 July onwards –re-opens under Govt social distancing guidelines

There are adverse effects in both periods. Pam can claim both grants

Example 2:

Adversely affected up to 13 July 2020 but not after

Andy is a self-employed window cleaner.

18 March –stops working completely

Mid-May –starts working again for some clients

By 13 July –working as normal

The adverse effect relates wholly to the period before 13 July 2020. There was no new adverse effect on or after 14 July 2020. Andy can claim the first grant but not the second.

Example 3:

Adversely affected up to 13 July but not after

Janet is a self-employed copywriter, working from home.

23 March –continues to work from home during lockdown

Before 13 July –several sales invoices long overdue

By 31 August –all outstanding sales invoices paid

Janet can claim the first grant because she was adversely affected when she made her claim even though the invoices were later paid. She can’t claim the second grant because there was no adverse effect on or after 14 July 2020.

Example 4:

Adversely affected after 14 July but not before

Leroy is a self-employed lorry driver.

Before 13 July –works as normal despite fear work might dry up

August –contract with farming client for September cancelled due to coronavirus affecting recruitment of workers to pick crops

Leroy can’t claim the first grant as he was not actually adversely affected before 13 July. Anticipating a future adverse effect is not enough to meet the qualifying condition. But he can claim the second grant as there was an actual adverse effect on or after 14 July 2020.

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