SEISS calculation

brad19

I have been paye and self employed in 2017 so my tax return for self employed only shows £800 profit. This has reduced my average 3 years considerably could I appeal or would this cancel my whole clain as only been fully self employed for two years

Jeremy535897

g1969 said:

I have a problem on this one.
I was employed in 16/17 so I guess that is not taken into account. In 17/18 I was employed and self employed  for which i made 30k from employment and a 12k loss on self employment. In 18/19 I was self employed and lets say 16k profit. So the way I looked at this was as my employment in 17/18 was greater than SE in 17/18 and 18/19 that would not make me  eligible for a grant as it needs to be 50% or greater to claim. So I thought my claim would be based on 18/19 only. However HMRC has added them together. I have appealed on the basis i am not eligible to claim over the 2 year period and believe I am over 1 year 18/19.  My money is down 90% on what it would have been. Any thoughts? 

I don't know why people persist in believing you ignore years where self employed trading income is exceed by other taxable income when calculating the grant. You don't. Other taxable income is only relevant to establish whether you pass the 50% test to qualify for SEISS at all. It has no bearing on the calculation of the grant itself.

g1969

This is why taken gov website ..

The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

To qualify, more than half of their income in these periods must come from self-employment.

So my trading profit from 17/18 &18/19 is less than my employed which means i am not entitled then?? 

Jeremy535897

No, because the first 50% test looks at 2018/19 only. If you pass it in 2018/19, you then move on to calculate the grant. If you don't pass it in 2018/19, in your case they would look at 2017/18 and 2018/19 together (the second 50% test). You would fail that test, but it doesn't matter.

g1969

Thank you 🙁

calcotti

g1969 said:

This is why taken gov website ..
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

To qualify, more than half of their income in these periods must come from self-employment.

So my trading profit from 17/18 &18/19 is less than my employed which means i am not entitled then?? 

These are the qualifying conditions. It is not the calculation methodology.

mobilejo

calcotti said:

g1969 said:

This is why taken gov website ..
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

To qualify, more than half of their income in these periods must come from self-employment.

So my trading profit from 17/18 &18/19 is less than my employed which means i am not entitled then?? 

These are the qualifying conditions. It is not the calculation methodology.

Soooo many people seem to struggle with this very simple yet very important distinction. I can't count the number of times I've seen it explained in threads like this.