SEISS 5th Grant Turnover vs. Profit

JDexter2014

Hi,
I was wonfering if anyone could shine some light on this for me? The criteria for eligibility of the first four grants have been based on a reduction in profits. The 5th grant however will shift towards being based on a reduction of turnover instead.

I'm a Carpenter who wasn't eligible for the first 3 grants and who in the last year has had to shift to private work over working for a firm. Now whilst I'll be eligible for the 4th grant, i won't be eligible for the 5th as my turnover is higher this year because I've been buying my own materials but my profit is way down - 35%~.It just seems like another case of the Gov holding out a lifeline with one hand taking it away with the other. 

Jeremy535897

We don't have sufficient information yet to know precisely how the turnover test will work.

goodfella66

I think, if I understood it right, the 5th grant is 80% if your turnover is down by more than 30%, and 30% if your turnover is down by less than 30%. If your turnover is higher, I presume you wouldn't qualify. 
Not sure what they are comparing it against though. Is it just the previous year or the previous 4 qualifying years? I'd hope it will be made clear in time.

Pennywise

Sounds like you'll fall into a new "excluded" trap.  None of the self employed scheme rules have really allowed for changes in circumstances.  I really don't think HMRC/Treasury know about the realities of self employment.  They've all assumed that you're "trade" is steady 2 years pre covid, during covid, and post covid.  In reality, that's a big ask for even the longest established and steady self employed.  In reality, yes, things change, often week to week, month to month etc., as demonstrated by the OP in this thread.  Similarly, people who've moved between employment and self employment over the past 2/3 years are likewise often stuffed and ineligible.  Unfortunately, as seen with the other "excluded" groups, very little hope of the rules being changed, even in the face of clear evidence of them being unfair in some circumstances.