Self Employment Grant eligibility?

shanejen

I don't have  3 years of self assessment

I have 17/18 and 18/19. I've used the HMRC tool to see what help i can get and i knew about the grant but I've read something I need clarification on.  

It states, 

To be eligible 

"your trading profits have been more than half of your total income for either 2018 to 2019 tax year, or as an average of last 3 financial years"

So my total income on 18/19 was 

£27,295.00 so half makes it £13,647,50

My profit was £13,446 so theres a £201.50 difference, my profits aren't more than half my income, so am i not eligible or have I worked this out wrong or have I misunderstood what it means?   . Any help is much appreciated. 

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Grumpy_chap

I think the 'half the income' part is that they need you to be mostly self-employed.  For example, if you are employed in a regular job PAYE, say £20k per year but also do some self-employed work, say £5k per year profits, you would be ineligible as less than half your income is from self-employment.

shanejen

Grumpy_chap said:

I think the 'half the income' part is that they need you to be mostly self-employed.  For example, if you are employed in a regular job PAYE, say £20k per year but also do some self-employed work, say £5k per year profits, you would be ineligible as less than half your income is from self-employment.

Yeah the only income I have is from self employment, I hope it is what you think. Thanks 

Grumpy_chap

OK, so all your income is from self-employment.  I understand it is your profits that matter here.  Using your figures, as I understand what you presented:

• Total income (revenue) £27,295
• Expenses to do the work (deductions) £13,849
• Profits £13,446 - this is the number that should have been declared as such in tax return.

The SEISS will be 80% of the profits, pro-rata to monthly level (about £900 / month).  Also, the profits used will be the average of two years (17-18 and 18-19) as you don't have three years' trading history.  
You are also allowed, indeed encouraged, to continue working as self-employed while the SEISS is providing some support.

calcotti

shanejen said: So my total income on 18/19 was 

£27,295.00 so half makes it £13,647,50

My profit was £13,446 so theres a £201.50 difference, my profits aren't more than half my income, 

shanejen said: Yeah the only income I have is from self employment, I hope it is what you think. Thanks 

When you say your total income was £27,295 are you referring to your business income before expenditure? If so that figure is irrelevant. When it says your self employed profits have to be at least half your income it is referring to your personal income.
Full details here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/882593/SEISS_Direction_Final_-_SIGNED.pdf

shanejen

calcotti said:

shanejen said: So my total income on 18/19 was 

£27,295.00 so half makes it £13,647,50

My profit was £13,446 so theres a £201.50 difference, my profits aren't more than half my income, 

shanejen said: Yeah the only income I have is from self employment, I hope it is what you think. Thanks 

When you say your total income was £27,295 are you referring to your business income before expenditure? If so that figure is irrelevant. When it says your self employed profits have to be at least half your income it is referring to your personal income.

Thanks now you've explained it, it makes sense.