Self employed income support scheme

[Baddegg]

You have to confirm your business has been adversely affected by coronavirus.

There's no further guidance on this, but it's assumed that if your profits are even a few £ lower than normal you'll qualify. If you've made more this year then you won't - however unlikely that is.

LINK

Far as I’m aware it’s nothing uk do with profits and loss....if your income from self employment comprises more than 50% of your normal income and you’ve been trading a predetermined period you qualify even if you’ve continued working during this period you can still claim, it’ll just affect this year’s profits, if you’ve adhered to the rules (vague as they are to some) and stayed at home then the amount you receive will be an average of 3 months in 3 years, not perfect but to be fair how else could they do it, other than a bit sooner ? so if you’ve carried one working and claim the grant you’ll potentially pay a bit more tax next year...

 

[buzzlightyear]

I will wait till and see if the bank of England to grant. Me any monies for the profits I made I the last 3 years in which equate to 0
My profits have gone in holidays, fast donkeys, cramped out cars and beers. Lol.

 

[suffolkspark]

Just done it and it says 8am 13th May ?

 

[Zerax]

My profits have gone in holidays, fast donkeys, cramped out cars and beers. Lol.

...and did you squander the rest ?

 

[davesparks]

Far as I’m aware it’s nothing uk do with profits and loss....if your income from self employment comprises more than 50% of your normal income and you’ve been trading a predetermined period you qualify even if you’ve continued working during this period you can still claim, it’ll just affect this year’s profits, if you’ve adhered to the rules (vague as they are to some) and stayed at home then the amount you receive will be an average of 3 months in 3 years, not perfect but to be fair how else could they do it, other than a bit sooner ? so if you’ve carried one working and claim the grant you’ll potentially pay a bit more tax next year...

To qualify for the grant your income must have been adversely affected, it's not available to self employed people who's income has not been adversely affected.

See here:

[Withdrawn] Check if you can claim a grant through the Self-Employment Income Support Scheme

If you're self-employed or a member of a partnership and have been impacted by coronavirus (COVID-19) find out if you can use this scheme to claim a grant.

www.gov.uk

 

[Baddegg]

To qualify for the grant your income must have been adversely affected, it's not available to self employed people who's income has not been adversely affected.

See here:

[Withdrawn] Check if you can claim a grant through the Self-Employment Income Support Scheme

If you're self-employed or a member of a partnership and have been impacted by coronavirus (COVID-19) find out if you can use this scheme to claim a grant.

www.gov.uk

Point being though Dave how will they/you know your income has been adversely affected untill next April?....if anyone compares to this period last year you’ve probably been affected to some degree, conversely if I’m doing a large build with staged payments that are not due till June for instance then it will still look like I’ve earned nothing for this period....but self employed work 12 months to 12 months so all qualify at this point

 

[davesparks]

Point being though Dave how will they know your income has been adversely affected untill next April?....so all qualify at this point

Only those adversely affected qualify for it as stated.
If you are not adversely affected and you apply, stating that you have been, then that doesn't mean you qualify, it means you've lied and committed fraud.

They will likely look at declared profits in the future to check that people didn't claim the grant fraudulently.

 

[Baddegg]

Only those adversely affected qualify for it as stated.
If you are not adversely affected and you apply, stating that you have been, then that doesn't mean you qualify, it means you've lied and committed fraud.

They will likely look at declared profits in the future to check that people didn't claim the grant fraudulently.

Agian that’s my point Dave.....no one will know they’ve been affected untill next April......so if there’s a massive job comes in later in the year pushing up profits have I lied that I was skint in April? At that point someone would most definitely have been adversely affected surely?

 

[davesparks]

Agian that’s my point Dave.....no one will know they’ve been affected untill next April......so if there’s a massive job comes in later in the year pushing up profits have I lied that I was skint in April? At that point someone would most definitely have been adversely affected surely?

Yes someone will know, the person who applies will know if they have been adversely affected or not, and they will make the declaration to say that they have.

If you get a massive job that makes up for the months of reduced income, and it's significant enough to be noticed by HMRC then when they carry out an investigation and look at your records they will see that you were adversely affected because it will be obvious from your records.

 

[Baddegg]

Yes someone will know, the person who applies will know if they have been adversely affected or not, and they will make the declaration to say that they have.

If you get a massive job that makes up for the months of reduced income, and it's significant enough to be noticed by HMRC then when they carry out an investigation and look at your records they will see that you were adversely affected because it will be obvious from your records.

Yes mate obvious from my records next April......not a lot of use now to either the self employed of the tax man...so on the flip side all the furloughed wages the government is picking up.....assuming these people return to work and do lots of overtime to catch up you could say they’ve not been affected either?....

 

[davesparks]

Yes mate obvious from my records next April......not a lot of use now to either the self employed of the tax man...so on the flip side all the furloughed wages the government is picking up.....assuming these people return to work and do lots of overtime to catch up you could say they’ve not been affected either?....

What do you mean its not a lot of use now?
Self employed people know now whether they have been affected or not, there's no way you can not know if you currently being affected.

The furlough scheme has nothing to do with this?

 

[Baddegg]

What do you mean its not a lot of use now?
Self employed people know now whether they have been affected or not, there's no way you can not know if you currently being affected.

The furlough scheme has nothing to do with this?

My point is all can claim the grant, you disagreed,I think you are saying they can’t unless adversely affected, I then make the point that on a yearly accounting basis it won’t actually show you were affected for that specific period as with simplified accounting at least it’s just an annual profit to pay tax on, so on that basis can any self employed person genuinely claim to have been affected?.....obviously we all have to some degree but all to different percentages ie some people will have lost a 100% of they income and someone else may have lost 14% over this lockdown period, but you can’t claim for a percentage you just claim for adversely affected, so my opinion is as before all claim and the amount will be added to 20-21 tax year and relevant tax paid on it.....what I think I’m saying is there is absolutely no way for either side to prove to what degree they were affected during this period.....the furlough scheme was just me trying to prove a point that the government is happy (doubtful) to pay the 80% but will make no effort to claim it back, or a percentage off,if the recipients earnings are bigger this year than last which means on paper at least they were no worse of, financially at least, from this situation.......bad example perhaps but it made sense in my head ?

 

[davesparks]

My point is all can claim the grant, you disagreed,I think you are saying they can’t unless adversely affected, I then make the point that on a yearly accounting basis it won’t actually show you were affected for that specific period as with simplified accounting at least it’s just an annual profit to pay tax on, so on that basis can any self employed person genuinely claim to have been affected?.....obviously we all have to some degree but all to different percentages ie some people will have lost a 100% of they income and someone else may have lost 14% over this lockdown period, but you can’t claim for a percentage you just claim for adversely affected, so my opinion is as before all claim and the amount will be added to 20-21 tax year and relevant tax paid on it.....what I think I’m saying is there is absolutely no way for either side to prove to what degree they were affected during this

Your tax return doesn't need to show that you were affected, however if it appears that your profits have increased and you have claimed the grant HMRC are likely to investigate and actually look at your accounts to see why.

Not everyone has been adversely affected, some people will have increased profits, for example undertakers and associated trades, carers and others.

My point is that only those who have been adversely affected are allowed to claim the grant, you make a declaration that your income has been adversely affected, if it has not then you are committing fraud.
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If you claim now because your income is down then your claim is legitimate, if your profits increase in December then your claim now is still legitimate.

If you are investigated they will see that your profits were down at the time you made the claim and that should be the end of it, the claim is genuine

 

[Midwest]

Why don’t you guys ask your accountants to clarify your position.

I know you gonna say I ain’t got one.

 

[Baddegg]

Why don’t you guys ask your accountants to clarify your position.

I know you gonna say I ain’t got one.

I did...,,they don’t know either ?