What if you have been Self-employed and employed over the last three years

PaulTheCleaner

I have just been to the garage to look at my tax returns after looking at the rules to qualify for the support package coming in June for self-employed people. Although 100% self-employed at the moment, over the three previous complete tax years 2016-17, 2017-18, and 2018-19 I was also in PAYE employment. When you take into account both PAYE and self-employed income the potential grant looks promising, however, if I base my potential award purely on the self-employed income then I am not in a very good position. There must be loads of people in the country in the same position so does anyone have any ideas?

calcotti

The grant is based on the SE profits, not the PAYE income.

Jeremy535897

The PAYE income might actually prevent the grant altogether, if it (plus any other non self employed taxable income) actually exceeds the SE income in 2018/19, and also for the three years of assessment 2016/17 to 2018/19.
 The guidance says:
"You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

• having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return."

PaulTheCleaner

It was only about 12 hours per week so should be less than 50% PAYE

Jeremy535897

I which case you won't be eligible for the SE grant, unfortunately.