HMRC calculations for the Self-employment Income Support Scheme
How HMRC works out total income and trading profits for the Self-employment Income Support Scheme
Eligibility
Your trading profits must be no more than £50,000 and more than half of your total income for either:
- the tax year 2018 to 2019
- the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019
Example
|
|
2016 to 2017 |
2017 to 2018 |
2018 to 2019 |
Average for the 3 tax years |
|
Trading profit |
£50,000 |
£50,000 |
-£10,000 |
£30,000 |
|
Pension income |
£15,000 |
£15,000 |
£15,000 |
£15,000 |
|
Total income |
£65,000 |
£65,000 |
£5,000 |
£45,000 |
|
Trading profit are more than half of your total income |
Yes |
Yes |
No |
Yes |
So even if you made a loss in the tax year 2018 to 2019, you would still be eligible for the grant because your average trading profit for the 3 tax years:
- is £30,000 - which is less than £50,000
- is more than half of your total income of £45,000