Another SEISS 5 question.

deano3

Evening, I'll keep this as brief as possible, thanks in advance to anyone good enough to assist.

In regards to the May while Sep test my profits are likely down for 4 of the 5 months, but up one month which was unexpected. Does anyone know if the overall period is relevant or each individual month, I'm content that 4 of the 5 months were indeed affected by covid, infact on my good month my earnings would be higher without covid so I can honestly say I've been impacted. I might have just answered my own question, but any observations would be welcome. 

Thanks

Pennywise

The test is the entire period, so as long as the entire period shows a "significant reduction" in trading profits, it doesn't matter how that manifests itself on a month by month bases.  So as long as the increase in month 5 isn't more than than the reduction in the other 4 months, you're good to go.  However if there's not much difference overall, then you've not had a "significant reduction" so not eligible.

deano3

Thankyou for your response. 

What I will say is that regardless of how much my business has generated my earnings will be less due to covid, I work in high risk covid area's, thus restrictions have been put in place allowing work to be done remotely, which in turn means I don't get as much business as I would have. These temporary changes in policy can be evidenced. 

Further, a significant reduction relative to what? 

Thanks, again. I'm just mulling it all over.

Jeremy535897

There must be a significant reduction in the profits for all of 2021/22 caused by coronavirus impacting the business in the period May to September 2021.

deano3

Thanks for your response.

In 20/21 I was approx 12k down, I suspect 21/22 will be down on a normal year but up from 20/21 as that was impacted greater by covid. 

However as above covid has impacted my earnings regardless, I have to say I'm a little confused.

Jeremy535897

2020/21 is irrelevant. If coronavirus causes your results for the period May 2021 to September 2021 to be reduced, and that reduction is big enough to cause a significant reduction in your 2021/22 profits as a whole (compared with what you would have expected them to be without coronavirus), you meet that criterion.

The concept is straightforward. The problem lies in the fact that, by the time you make the claim, you don't actually know what your results will be to 30 September 2021, or for the tax year 2021/22. (I am assuming your year end is 31 March or 5 April 2021. If not, it is more complicated.)