HMRC has published a new guidance document for the Self-Employed regarding applications for the Fifth Grant. It is important to note that the fifth grants differs from previous grants in that the amount that a person will receive will be determined by how much their turnover has been reduced in the year April 2020 to April 2021.
To work out your eligibility for the fifth grant, HMRC will first look at their 2019 to 2020 Self Assessment tax return and you will only be eligible if your trading profits are no more than £50,000 and at least equal to your non-trading income. If you are 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.
HMRC will provide more information and support by the end of June 2021 to help applicants work out how their turnover was affected.
