Another self employed question

kiely27

My husband has been 100% self employed since October 2018, before that he was an employee. In 18/19 tax year he earnt £41 more as an employee than self employed. He has not had a single penny of work for over three weeks now because of Covid-19. Am I right in thinking he is not entitled to the government's support grant because his self-employed earnings were less than 50% in 18/19? (We are unable to claim UC because we bought a renovation project and we have the works money in the bank. This money is already 'spent' with contractors. They are unable to continue work at the moment due to not being able to get materials but we will not pay them until the work is completed).

Jeremy535897

What was the nature of the self-employment? Is the renovation project part of it, or for your personal occupation?

kiely27

Self employment completely unrelated. The renovation is our family home and I only mentioned it because it means we are unable to get universal credit due to having the money in the bank to cover the works. 

Jeremy535897

When did you buy the renovation project?

kiely27

Feb 2019. Why is that relevant?

Jeremy535897

Pity. If you had bought it recently, and certainly after 5 April 2019, you might have decided in the current environment that it would be best to treat it as a project to do up and sell, which would render it and associated bank accounts as business assets and therefore disregarded for universal credit. But you would have had to report it as a business on your 2018/19 self assessment return. However, I guess that if you genuinely decided today that you had to do this as a business project because you couldn't afford to keep it now, you could transfer it into a business and move the cash into a business bank account. It seems a lot to go through for a universal credit claim though, and you'd hate me if you sold it for a large profit and then had to pay tax on it, so best to forget it.

kiely27

Oh, I hadn't thought of that. It is our family home and, like you say, with stamp duty it wouldn't be worth it. Thank you for trying to help though. 
My question still stands, will my husband lose out due to the £41 earned extra as an employee in 18/19?

Jeremy535897

I am afraid you are correct on that point.

rafhelp

has nahyone received the invitation to apply for grant from government yet?

Jeremy535897

Not as far as I am aware. I wouldn't expect it before May.