HMRC calculations for the Self-employment Income Support Scheme

Thu, 04/16/2020 - 16:06 | billie@innov8gd.com

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