Self employed grant

Britt1

Is the £50,000 trading profit cutoff limit pre tax profit or after tax profit?

Jeremy535897

It is taxable trading profit, so before any tax payable on it.

saintsmn

Slightly off topic, will the £10,000 grant be taxable on next year's returns?

Jeremy535897

Yes. From FAQs for LAs:
12. Will these grants be taxed? Yes, the Small Business Grants, and Retail, Hospitality and Leisure Grants will be subject to tax. However, businesses that make a loss this financial year will pay no tax on the grants. Only profitable businesses will be taxed, and it is right that they contribute to our vital public services at this time.

calcotti

saintsmn said:

Slightly off topic, will the £10,000 grant be taxable on next year's returns?

The maximum SEISS is £7500. It is taxable.

Jeremy535897

calcotti said:

saintsmn said:

Slightly off topic, will the £10,000 grant be taxable on next year's returns?

The maximum SEISS is £7500. It is taxable.

I assumed from the figure OP was talking about the property related grants, but it may be anticipating an increase in SEISS to match the CJRS extension.

Britt1

Jeremy535897 said:

It is taxable trading profit, so before any tax payable on it.

Has the government announced that it will go on accounting profits rather than tax adjusted profit then?

Jeremy535897

Britt1 said:

Jeremy535897 said:

It is taxable trading profit, so before any tax payable on it.

Has the government announced that it will go on accounting profits rather than tax adjusted profit then?

Not sure what you are asking. Your accounts will be prepared for 2020/21. The SEISS grant will be a taxable receipt of the business, just like a sale to a customer. It will form part of the accounting profit or loss for the year. That accounting profit is adjusted for tax purposes to arrive at the taxable trading profit.

Britt1

I’m just trying to figure out if I’m eligible for the grant on my last 3years accounts, I know the grant will count towards my 2020/21 income if I’m able to claim

Jeremy535897

I think I answered that in the second post. The figures used to calculate SEISS are taxable trading profits, not accounts profits.