Self employed grant taxable income

Redd6767

Hi.The self employed grant will be 80% of our average monthly payments x 3, from last three tax years 2016/17 17/18, and 18/19..So in effect we are paying 20 % tax on that..So Iam I right in saying that the grant will be a taxable income  and does that mean another 20% tax on that , thus in reality making it 40% in total, or have I got wrong end of the stick.

whizzywoo

What on earth do you mean, you will be paying 20% tax on it?  They are giving you the money.
It will be taxable income but presumably you will also have business overheads to be paid out of it.  And also your business turnover will have decreased for those 3 months at least meaning there is less taxable profit.

calcotti

Redd6767 said:

Hi.The self employed grant will be 80% of our average monthly payments x 3, from last three tax years 2016/17 17/18, and 18/19..So in effect we are paying 20 % tax on that..So Iam I right in saying that the grant will be a taxable income  and does that mean another 20% tax on that , thus in reality making it 40% in total, or have I got wrong end of the stick.

You are being given income for free. If your total income at the end of the year is over your threshold you will have to pay tax on it.

Grumpy_chap

I understand the SEISS will be taxable, but you can also carry on working.