S/e grant

JohnMcL

I'm a contractor, and have been working through an umbrella company for 3 years. My tax and insurance are deducted at source so when the company closed down due to the lockdown, the agency informed me I was eligible for furlough payments. However, this week the umbrella company has informed me that HMRC have made the decision that anyone paid through an umbrella company will be eligible for 80% of the national minimum wage and not 80% of their normal rate. I live 66 miles from work and come August I will have been at that site for 2 years so under the new IR35 rules I will also lose the benefit of expenses allowance, which means paying for my accommodation for 4 nights out of my pocket money. What a double kick in the teeth. 

slacky1230

deno2000 said:

Little worried here. My date to apply isn't till tomorrow but I see people getting random amounts over only trading a few months of a year.

What would happen in my case?
2016/17, full paye
2017/18 mainly paye apart from the last 2 months of that tax year when I became self employed on Feb 2018. (Did not make over 50% more in profit than paye)
and 2018/19 full year of self employed. 
I expected them to just use my full year.

Theyll take both 2017/2018 and 2018/2019 then divide by 24 no matter how long you self employed in 2017/2018

Jeremy535897

Assuming you meet all the eligibility criteria, your grant should be your self employed trading profits for 2017/18 plus those for 2018/19 divided by 24 to get the monthly average times 3 for the 3 months times 80% capped at £7,500.

deno2000

surely that cant be right. i would be down around 1.5k from what i was expecting..

i thought they where not going to take into account a year where self empolyed profits was less than the paye for that year.

Jeremy535897

deno2000 said:

surely that cant be right. i would be down around 1.5k from what i was expecting..

i thought they where not going to take into account a year where self empolyed profits was less than the paye for that year.

That was a misconception that got a surprising amount of credibility. People confused the 50% eligibility test with the calculation of the grant.

deno2000

shocked and a bit grrrr. But thanks for your replys jeremy

kimi1977

deno2000 said:

Little worried here. My date to apply isn't till tomorrow but I see people getting random amounts over only trading a few months of a year.

What would happen in my case?
2016/17, full paye
2017/18 mainly paye apart from the last 2 months of that tax year when I became self employed on Feb 2018. (Did not make over 50% more in profit than paye)
and 2018/19 full year of self employed. 
I expected them to just use my full year.

I think they will add those years up / divide by 3 then per quarter and take 80% of that.

slacky1230

deno2000 said:

surely that cant be right. i would be down around 1.5k from what i was expecting..

i thought they where not going to take into account a year where self empolyed profits was less than the paye for that year.

I'm afraid it is im in the same boat after doing my claim this morning. If you earnt more than 50% from other income you aren't eligible so how can they include the non eligible year ( the year going from employed to self employed) on your average? Just a way for them to save money. Im not saying right that whole year off but atleast include the months you was self employed and not the whole year 

Jeremy535897

slacky1230 said:

deno2000 said:

surely that cant be right. i would be down around 1.5k from what i was expecting..

i thought they where not going to take into account a year where self empolyed profits was less than the paye for that year.

I'm afraid it is im in the same boat after doing my claim this morning. If you earnt more than 50% from other income you aren't eligible so how can they include the non eligible year ( the year going from employed to self employed) on your average? Just a way for them to save money. Im not saying right that whole year off but atleast include the months you was self employed and not the whole year 

The rules are clear. First you check if you are eligible. One of the rules is that your self employed trading income must be at least equal to your other taxable income in 2018/19, or if it is not, you then look at whether your self employed trading income for 2016/17, 2017/18 and 2018/19 is at least equal to your other taxable income in 2016/17, 2017/18 and 2018/19 (they only look at the last two years if you started self employment after 5 April 2017). If you pass either of these tests, and all the other eligibility criteria, you can claim. Your claim is based on the average of your self employment income for those three years (or two years if you started trading after 5 April 2017). It doesn't matter whether your other taxable income for, say, 2017/18 exceeded your self employed trading income.

whizzywoo

JohnMcL said:

I'm a contractor, and have been working through an umbrella company for 3 years. My tax and insurance are deducted at source so when the company closed down due to the lockdown, the agency informed me I was eligible for furlough payments. However, this week the umbrella company has informed me that HMRC have made the decision that anyone paid through an umbrella company will be eligible for 80% of the national minimum wage and not 80% of their normal rate. I live 66 miles from work and come August I will have been at that site for 2 years so under the new IR35 rules I will also lose the benefit of expenses allowance, which means paying for my accommodation for 4 nights out of my pocket money. What a double kick in the teeth. 

You are talking about furlough.  This thread is about the SEISS grant for self employment.  If you have a question it is better to start your own thread.