80% grant for self employed

calcotti

BogBrush85 said:

No you wont get a grant if your still working. Do you think that is fair? The conditions are set clearly. You must have lost profit in the last three months and not been able to work since March. 

That is incorrect. There is no restriction on the self employed continuing to work and receiving the grant if they have lost work as a result of coronavirus. We don’t know what evidence will be required to evidence that business has been affected. In the case of the OP’s example if they had earned £5000 over 3 months that is clearly less than normal if the grant entitlement is £7,500.
the screen shot posted by OP clearly states that it a requirement that the claimant is still trading or would be if not for coronavirus. This clearly means that ongoing trade does not prevent a claim.

WayneB73

When the government agreed to the grant payout in late March I know most of us working in construction were still working,  it wasn’t until material depots closed we were forced to stop working, I haven’t worked since March 20th but I know my earnings in that month were above the maximum £2500 grant..

when I mentioned I’d only be entitled to 2 months grant some people said no you get 3 x £2500 whilst others say it will be 2 x £2500.  Either way I don’t mind it’s just confusing as everyone seem to say something different..

georgiasdragons

Maybe people will have to upload bank statements to prove what they have been earning before lockdown and they have no incomes since lockdown 

calcotti

georgiasdragons said:

Maybe people will have to upload bank statements to prove what they have been earning before lockdown and they have no incomes since lockdown 

That is misleading. There is nothing to suggest that need to have no income since lockdown in order to qualify, quite the contrary.

WayneB73

Thanks for input, I’d like to think Colcotti is correct seen as it’s positive in favour of us in need of the help 👍

comeandgo

I disagree. It states on HMRC that this grant is for self employed who's profits are reduced due to covid 19.  You ask how HMRC could monitor this, easily when the2020/21 tax returns are sent in.  I would imagine HMRC will set parameters and ask questions of those who do not come within the parameters.  

calcotti

comeandgo said:

I disagree. It states on HMRC that this grant is for self employed who's profits are reduced due to covid 19.  You ask how HMRC could monitor this, easily when the2020/21 tax returns are sent in.  I would imagine HMRC will set parameters and ask questions of those who do not come within the parameters.  

I am sure there will be a review at the end of the year and questions may be asked and in some cases grants may be recovered. However that isn’t what was asked. The question was will the grant paid in June be reduced by any current earnings. I think that is unlikely but as I also mentioned we don’t know the details of the claim process yet.

Jeremy535897

Guidance says:

"This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. It will be available for 3 months, but may be extended.

The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.

You can make a claim for Universal Credit while you wait for the grant. You should record the grant as part of your self-employment income, and it may affect the amount of Universal Credit you get. This will not affect Universal Credit claims for earlier periods.

If you receive the grant you can continue to work or take on other employment including voluntary work."

It also says:

"You will need to confirm to HMRC that your business has been adversely affected by coronavirus. HMRC will as usual use a risk based approach to compliance."

WayneB73

I think a lockdown and told to stay at home will class as adversely effected by corona?

Jeremy535897

WayneB73 said:

I think a lockdown and told to stay at home will class as adversely effected by corona?

If it did, why would they put this requirement in, as it would be met by everyone? If your business is one of the few that thrives from the current situation, you would probably not meet this condition.