Self employed SEISS scheme-SIPP contrubutions.

RICARDO1972

I understand that to qualify for the upcoming SEISS coronavirus  payment I need to have an average trading profit of 50k or less averaged out over the last three years.Unfortunately for me my average comes out at just under 51k,BUT,if personal pension SIPP contributions are factored into the equation my trading profit lowers to about 47k.Anyone know if these will be factored in by the HMRC criteria.Many thanks.

Illusionary

Pension contributions reduce your total taxable income, not your trading profits - so no, I'm afraid that your contributions won't help you here.

Jeremy535897

Tax relief on pension contributions is given after taxable trading profit is calculated, so it will not have any impact on the calculations of taxable trading profit for the self employed grant. Remember that you only have to pass one of the two "£50,000 tests", either that your self employed average annual taxable trading income for 2016/17 to 2018/19 has to be less than £50,000, or your self employed taxable trading income for 2018/19 has to be less than £50,000

RICARDO1972

That's what I suspected,no harm in asking though,thankyou.