Self employed grant

monaymadlol

Hi, I have some questions about the 80%, upto £2500 grant.

1) if you are allowed to carry on working, how are you supposed to  be prove that you were adversely affected? I don't know anyone who is eligible who won't claim the full amount.

2) given it will be paid in one lump sum for the 20/21 tax year, should the total amount be added to  that tax year? Or backdated given it covers March, April and May? So the first month (March) for the 19/20 year and the other two for 20/21?

Jeremy535897

You self certify that your business has been adversely affected by coronavirus, if it has been. There is no de minimis. If you are a smallholder and sell a dozen eggs once a week at the local hairdresser, and you can't now it's shut, your business has been adversely affected. If you work as a sub-contractor, and can show you normally worked most days in April, but this year you worked for only two weeks because work wasn't available, again you meet the conditions. We do not know how HMRC will audit this requirement. They may look closely at businesses that might be expected to be unaffected by coronavirus.

Prudent accounting would say that the grant should not be included in accounts until eligibility is confirmed. I would also note that the guidance and the Treasury Direction do not specifically say that it is for March, April and May 2020. The guidance says it is for 3 months. For those many people who will not have completed their accounts for 2019/20 (and whose year end is 31 March or 5 April) by the time eligibility for the grant is confirmed and the amount is quantified, it would not be unreasonable to bring one third into the 2019/20 accounts.

ProDave

I do my accounts on a cash basis, so it will appear in my accounts the day it lands in my bank account.