Employed and self-employed

HappyCleaner

I was fully self employed in 2018/19 and the preceding 3 tax years but since October 2019 am 60% employed and 40% self employed.  I have been furloughed by my employer.  Having completed the eligibility HMRC first stage I am eligible for the self employment support grant and although my self employment income is significantly reduced can I proceed with the self employment grant scheme if I am also furloughed?  

Jeremy535897

Yes you can, so long as your self employment has been adversely affected by coronavirus.

ProDave

Yes.  All that matters is over the last 3 years, your SE earning is more than 50% of your total income.

Jeremy535897

ProDave said:

Yes.  All that matters is over the last 3 years, your SE earning is more than 50% of your total income.

Not quite. The 50% test is only one of the eligibility criteria and it has to be met either for 2018/19, or the years 2016/17, 2017/18 and 2018/19 taken together.

HappyCleaner

Yes, for the past 3 tax years my self employment has consistently been more than 50% of my income BUT since October 2019 on a month by month basis my newly employed status is 60% of my income and self employed is 40%.  Is the grant application based on my current income or my historical income?  My self employed income is being negatively affected by closure of hospitality industry.  Worried about claiming the grant and the 2020/21 tax year demonstrating that my SE income was les than 50% after all.

calcotti

HappyCleaner said:

Yes, for the past 3 tax years my self employment has consistently been more than 50% of my income BUT since October 2019 on a month by month basis my newly employed status is 60% of my income and self employed is 40%.  Is the grant application based on my current income or my historical income?  My self employed income is being negatively affected by closure of hospitality industry.  Worried about claiming the grant and the 2020/21 tax year demonstrating that my SE income was les than 50% after all.

It's all explained here https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Tax years 2019/20 and 20/21 are not used for collating the amount of grant.

Jeremy535897

The 50% test is not applicable for 2019/20 or 2020/21. Calcotti supplied the link of the details.

PalSol

Hi All,
Need a little help, I have been self employed as a sole trader since 2012 always completing and submitting my self assessment for the relevant time periods. I became a limited company in April 2019 and ceased being a sole trader. I have not yet had to submit company accounts yet.
On my tax return for 2018/2019 I stated that I will not be making a payment on account as I will have ceased trading.
My business has been serverly restricted due to the Coronavirus and am hoping I am eligible for the self employed scheme having submitted my return in the required time.
Thanks in advance.

Jeremy535897

Unfortunately you will not meet the eligibility criteria. You had to be a self employed trader in 2019/20.