Self employed and paye grant

busybusybee_3

I’m trying to find out what happens if you submitted tax returns for 3 years but the first 2 years you were majority PAYE and 3rd year you were majority self employed. Would your average profit for the grant be taken from all 3 years or just the final year when self employment was the main income? This would make a huge difference to us! 

Jeremy535897

You will pass the 50% eligibility test, so long as your self employed taxable trading profits in 2018/19 was at least equal to all other taxable income for 2018/19. For the actual calculation of the grant, you will add up the self employed taxable trading profits
for the three years, divide by 36 to get a monthly average, and then multiply by three to get the profit figure for the grant. You then multiply that by 80%, and your grant is that figure, or £7,500 if lower.

busybusybee_3

That’s what worried me, profit was only £2000 in first year, 2nd year £5000 as I was predominantly employed. Last year my profit was £16,000 as I took the jump and only work a few hours employed. So I’ll get approximately £1500. For the 3 months, whereas it would be nearer to £3200 if they used last years figures! Pretty disappointing! Is there a way we can ask them to only use last years figures? 

Jeremy535897

Unfortunately there is not.