What is available?
- The second grant provides an amount of 70% of average monthly profits for 2016/17, 2017/18 and 2018/19.
- The grant covers three months’ worth of average profits.
- The maximum amount that can be claimed is £6,570.
- Profits must be less than £50,000 and more than half of total income for 2018/19, or for the previous three tax years on average.
- The claim must be made by 19 October 2020.
More information about the grant and eligibility is included in my blog Coronavirus: Second self employment grant.
What is included in ‘profits’?
The profits used will be taxable profits, after deducting allowable expenses and capital allowances, or the £1,000 trading allowance.
Brought forward losses will be ignored.
What if I have made losses?
Unfortunately, loss making years will be included when calculating average profits.
If you made losses of £10,000 in 2016/17 and profits of £20,000 in each of 2017/18 and 2018/19 then:
- Total profits over three years are £30,000 (£20,000 plus £20,000 less £10,000)
- Average profits over three years are £10,000 (£30,000 divided by three)
- Average monthly profits are £833.33
- The three-month claim will be for £1,750
What’s included in total income?
Total income will include:
- Earned and trading income
- Property income
- Savings and dividends
- Pension income
- Social security income
Any questions?
Please contact me if you have any questions about the self-employment grant scheme or any other coronavirus support
