Self Employment Grant 3

Invest987

My husband is a London Black Taxi Driver. He had to stop work due to Lockdown, sheilding and on going consequences i.e no custom in London to cover the running costs of the Taxi let alone a profit.  After 7 months and claiming the first two grants he is forced to take a PAYE job until work levels return to normal for the Taxi Trade. I cannot see anywhere that this is allowed or disallowed for the third grant. Any idea?   

Pennywise

That's allowable as long as he intends to return to his self employment.

Jeremy535897

You must have traded in both tax years:

• 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
• 2019 to 2020

You must either:

• be currently trading but are impacted by reduced demand due to coronavirus
• have been trading but are temporarily unable to do so due to coronavirus

You must also declare that:

• you intend to continue to trade
• you reasonably believe there will be a significant reduction in your trading profits

Reasonable belief

In order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.

Significant reduction

Before you make a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.

HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.

There are some examples that can help you decide.

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