Self Employed Grant help Needed

pateire

Can anyone help
what part of the Business income does HMRC class as Adversely Affected
is it total income or total profit
thanks

mcooke999

The grant is based on your self employed profits

justwhat

Either and or ....... i dont think it actually says Adversely Affected total income or total profit/turnover.  

"HMRC has provided some guidance on the meaning of ‘adversely affected’.  This includes being unable to work because the taxpayer is shielding, self-isolating or is on sick leave or has care responsibilities because of coronavirus. It also includes scaling down or temporarily stopping trading because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work."

From .gov site
" Your business could be adversely affected by coronavirus if, for example:

• you’re unable to work because you:
  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus
• you’ve had to scale down or temporarily stop trading because:
  • your supply chain has been interrupted
  • you have fewer or no customers or clients
  • your staff are unable to come in to work "

whizzywoo

mcooke999 said:

The grant is based on your self employed profits

The amount of grant you receive is based on self employed profits but the business income could be adversely affected by the following examples:

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#check

"Your business could be adversely affected by coronavirus if, for example:

• you’re unable to work because you:
  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus
• you’ve had to scale down or temporarily stop trading because:
  • your supply chain has been interrupted
  • you have fewer or no customers or clients
  • your staff are unable to come in to work"

justwhat

taken from https://www.tax.org.uk/media-centre/blog/media-and-politics/deep-dive-seiss-and-job-retention-scheme-compared-and

"As payments will be based on previous years’ profits, and there is no condition quantifying adverse impact, some claimants may be financially better off.  A claimant may only see a small or no reduction in profits or turnover but could still be eligible for the full grant (see the House of Commons Briefing Paper CBP 8879 of 8 April 2020 on the SEISS).   Where, for example, work has been done or contracted for, but payment has not been received; or work has been started, put on hold and is expected to recommence, yielding the same income as if the lock down had not occurred, there may be no loss of profits.  An operator who uses time during the lockdown to generate further work may even increase profitability in the current tax year. " 

justwhat

Taken from Commons Briefing Paper CBP 8879 of 8 April 2020 on the SEISS

"The SEISS differs from the Coronavirus Job Retention Scheme in that grants paid under

the SEISS will not cover actual loss of earnings. Rather, the SEISS will pay out at a level

calculated based on past earnings. So, even if a self-employed individual only sees a small

reduction in their profits they will still get a full grant. The Institute for Fiscal Studies

estimates some self-employed workers will therefore be financially better off than they

would have been without the crisis."