It's been a busy few hours for me thanks to the Budget. Been emailing clients about the expected 4th grant for the self-employed and the newly announced 5th grant.
The 4th one is similar to the 3rd but will be based on the average profits for 2016/17 to 2019/20 rather than 2016/17 to 2018/19. There was a late reprieve for filing the 2019/20 tax returns from the usual deadline of 31 January to yesterday. So it means that it will take time for HMRC to work out the figures so claims can't be made before late April.
The 5th one won't be available until July. There's a big difference from the other grants. 80% of 3 months average profits if turnover for 2020/21 is 30% or more lower. However if the reduction in turnover is more than 30%, the 80% drops to 30% so a lot less. Guidance will be issued but at present I don't know if the turnover is compared to the turnover for 2019/20 or something else. Also are the grants to be treated as part of the 2019/20 turnover? That would be unfair but that's another unknown. Are tax returns for 2020/21 required to be filed much earlier than normal to be able to claim that grant?