SEISS Grant 4 question

JollyDe

Looking for some guidance on whether I should apply for grant 4.

Background:

I've been a sole trader since 2012, but I had one year out in 2016/17 to work a PAYE job. I filed a tax return for that year at £0 as I believed HMRC required this.

Fast forward to the first three SEISS grants - HMRC took the PAYE year into account which brought down my average massively. However I was grateful for the help as my income has been affected by the pandemic.

I work as an editor. In terms of being affected there has been a general battening down of the hatches although I have had some work. I have to look at my business as a year overall, as sometimes I make a lot of money one month and then there may be nothing for a few months. I don't really have a steady income month by month.

Freelance income (gross):

2019/20: £14,942

2018/19: £8879

2017/18: £6877 (+ £1958 PAYE)

2016/17: PAYE only @ £24,000

2014/15 £13,500

2013/14: £26,000

2012/13: £21,500

My dilemma

My income for 2020/21 including the first three SEISS grants is £8,000. Without the grants it would be around £5000. Compared to last year and other years I am down massively.

However 2018/19 and 2017/18 were quite poor, and combined with how HMRC work out the averages they might deem that I shouldn't apply.

Could you advise?

Jeremy535897

2018/19 and 2017/18 are irrelevant to your question. They only affect the amount of the grant. Whilst comparing 2020/21 to 2019/20 isn't the right test either, your non-grant income has fallen by about £10,000, or two thirds, so clearly something has impacted your business in 2020/21.

If you expected that your 2020/21 business should have been around the same as 2019/20 if coronavirus hadn't happened, you have a significant reduction in profits in 2020/21. You also have to show that February to April 2021 results caused a significant reduction in those trading profits. 

The detailed rules are here:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme