SELF-EMPLOYMENT GRANT LOWER THAN PROMISED 80% OF PROFITS? Please share your experiences here

Mckele

I also began my self employed business from Jan 2017.I only made £1,142 profit 2016/17.
In 2017/18 I had £20,615 profit and in 2018/19 £27,416.
By being calculated over the 36 months I am only  entitled to a grant of £3279, which is over £1000 less than I was expecting. 

whizzywoo

bobbooo said:

I'll get this thread back on topic by sharing my experience. I started my business on the very last day of the 16/17 tax year. Obviously my profits were minimal for this one day, but have still been used in a three-year average calculation alongside full-year profits for the 17/18 and 18/19 tax years. This has resulted in my grant representing 53% of my actual average profits, which is not enough for my business to survive. The absurdity and arbitrary unfairness of this is clear when you consider that if I'd started trading one day later, I would be receiving the 80% of my profits that everyone should be getting and was originally promised by the government.

To satisfy my curiosity how much net profit was on your SA tax return for the 2016/17 tax year?

rsspence

Same issue for my wife, just £462 profit for 16/17. approx. £12k for the next two years, so a good deal of money less than we thought. I know it is hard to set up and as with everything there are winners and losers, but it would be nice to have this assessed on a true reflection of loss due to covid19. We have made a claim, lets see what happens.

kirky058

I've just done my claim and have experienced the same problem. I was employed for all of 2016/2017 tax year and began self employment part time in October 2016 (making around £700 profit for the tax year). I left my employment in April 2017 to become full time self employed. They have included the 2016/2017 tax year in my grant and its cost me £1000. 

bobbooo

whizzywoo said:

bobbooo said:

I'll get this thread back on topic by sharing my experience. I started my business on the very last day of the 16/17 tax year. Obviously my profits were minimal for this one day, but have still been used in a three-year average calculation alongside full-year profits for the 17/18 and 18/19 tax years. This has resulted in my grant representing 53% of my actual average profits, which is not enough for my business to survive. The absurdity and arbitrary unfairness of this is clear when you consider that if I'd started trading one day later, I would be receiving the 80% of my profits that everyone should be getting and was originally promised by the government.

To satisfy my curiosity how much net profit was on your SA tax return for the 2016/17 tax year?

£10. I hope you can see how ridiculous the current system is when they use that as effectively a whole-year profit.

whizzywoo

bobbooo said:

whizzywoo said:

To satisfy my curiosity how much net profit was on your SA tax return for the 2016/17 tax year?

£10. I hope you can see how ridiculous the current system is when they use that as effectively a whole-year profit.

It seems very strange to me to start your self employment one day before the end of tax year and put yourself to all the trouble of completing accounts and SA tax return.  Was there a particular reason for this?

Sdw1985

My other half is in the same boat. Mainly employed for 16/17 and his self employment profit was under £900. This has been taken into account when I thought it wouldn't be due to self employment not being worth 50% of his income for the year. I could understand if they counted the month(s) he was SE but not dividing it by 12. If this year wasn't counted he would be getting nearly £2k more in a grant. 

_tonybroke_

i have my appointment at 8am tomorrow morning,and tbh the money can come soon enough!
i have a few questions if anyone can help me
at 8am where do i log in to start my claim?
what is on the form and what information will i need at hand to complete the claim?
..i will be doing my claim on the phone tomorrow morning and wont be near my laptop so want to have all info at hand.
thanks in advance and good luck to all

Dazed_and_C0nfused

You seem confused.  If you are logging in why are you also claiming on the phone??

Anyway this video's will show the questions you should be asked.

https://youtu.be/nRNKONgLqhg

bobbooo

whizzywoo said:

bobbooo said:

whizzywoo said:

To satisfy my curiosity how much net profit was on your SA tax return for the 2016/17 tax year?

£10. I hope you can see how ridiculous the current system is when they use that as effectively a whole-year profit.

It seems very strange to me to start your self employment one day before the end of tax year and put yourself to all the trouble of completing accounts and SA tax return.  Was there a particular reason for this?

There was a business opportunity that depended critically on catching a trend in time. I'm now being punished for being honest about a single day's profit and going to all that trouble to fill out a tax return for 16/17.