80% grant for self employed

sibod2002

This is a guess but HMRC pay the the whole 3 months grant...then For the likes of myself where I am taxed weekly surely they would just check at some point what tax/if any I have paid in the 3 months in question and can work out that way if I have earned and if needs be request some kind of payment back based on the numbers? 

Jeremy535897

Your CIS tax payments don't reflect the whole picture. That's one of the reasons why most sub contractors get refunds when filing their tax returns.

Hermann

sibod2002 said:

This is a guess but HMRC pay the the whole 3 months grant...then For the likes of myself where I am taxed weekly surely they would just check at some point what tax/if any I have paid in the 3 months in question and can work out that way if I have earned and if needs be request some kind of payment back based on the numbers? 

You either get the whole grant or none of it.

If you qualify for a payment then that is calculated on your 2016 to 2019 tax returns.

Your earnings March to June have no effect on the amount payable.

To qualify for the payment however some measure of how your trade has reduced will have to be taken. We don't know that detail yet, not how it will measured, not who much or in what way it has to have been affected, nor how that will be evidenced if at all.

sibod2002

Yeah agreed it’s hard to second guess untill the letter comes through the door..I have had 5 weeks off and but am back to work tomorrow and if I am offered the grant I will be taking as I have suffered however looking like not the whole 3 months 

stulaunch

sibod2002 said:

Yeah agreed it’s hard to second guess untill the letter comes through the door..I have had 5 weeks off and but am back to work tomorrow and if I am offered the grant I will be taking as I have suffered however looking like not the whole 3 months 

I'm roughly in the same boat as you sibod2002 not had an work for around 4 weeks. Got a bit of work coming up. 
I do think some guidance from HMRC need to come because I know of sub contractors who are turning work down because the belive it will affect their grant. That is not right and I don't believe that was the intention of the Chancellor when he made the announcement. He said he wanted work to continue, whenever possible, to keep the economy moving. 

Jeremy535897

Guidance says:
"If you receive the grant you can continue to work or take on other employment including voluntary work."
I have said before, and I might well be wrong, that I don't believe HMRC will take the sort of numbers based approach feared by sibod2002 and others to test whether a business has been hit by coronavirus. I pointed out that it makes no sense if your business lost money in 2018/19. From a technical point of view, turning down work is not something that proves your business has been hit by coronavirus. All it proves is that you've turned down work because you fear losing a grant payable because of a coronavirus pandemic.