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Where Taxpayers and Advisers Meet

Self Ass' advice RE Covid19 grant..Pls help tax noob

0SP0
Posts:2
Joined:Fri Mar 27, 2020 4:51 pm
Self Ass' advice RE Covid19 grant..Pls help tax noob

Postby 0SP0 » Fri Mar 27, 2020 5:04 pm

Hi knowledgeable people,

I have been Self Employed since Dec 2018, I was told i didn't need to do a 18/19 tax return.
I've had no income for 2 weeks now due to Covid19 situation and I want to fill in my tax self assessment for 18/19 even though it is only £800 and also file 19/20 on April 6th, so that I have a record, and the Gov' can work out my average wage and I can claim the grant.

I am about to amend my 18/19 SA tax return to include the £800 and fill in my 19/20 with the full March-April years earnings ( it's under 11k)
My question is:-
Should I amend 18/19 with my £800 overall earnings, or just leave it at £0 in order to gain the best average for the grant?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Self Ass' advice RE Covid19 grant..Pls help tax noob

Postby robbob » Fri Mar 27, 2020 7:20 pm

Hello 0SP0

if you want to claim grant you will need to amend 18/19 return.
However i suspect you would not be eligible for the grant as one of the rules is
Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment.
So if you have other income over £800 ye 5/4/2019 you will not qualify

note even if you do qualify £800/12 = £66 per month * 80% = £55 per month better than nothing but not much help in the scheme of things.

your 2019/20 earnings are not relevant to the calcs

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

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Self Ass' advice RE Covid19 grant..Pls help tax noob

Postby maths » Fri Mar 27, 2020 8:35 pm

Per HMRC:

"Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income"


It's therefore necessary to compare trading profit (not income) with total taxable income for the tax year. Your £800 is income pre expenses?[/size]

0SP0
Posts:2
Joined:Fri Mar 27, 2020 4:51 pm

Re: Self Ass' advice RE Covid19 grant..Pls help tax noob

Postby 0SP0 » Sat Mar 28, 2020 11:44 am

HI,

Thanks for replies, I'm also claiming Universal Credit, so that was my only other source of income 18/19, my profits 19/20 are better as I built up clients, is there any updated info that says a 19/20 tax return can be used for an average instead?

I will scrape by as UC have taken away minimum income floor and I will receive full UC but this is far less than what I would have earned working.
I'm thinking I'll just leave 18/19 as £0 and hope that they will say recently SE can use the 19/20 tax yr when I can file it on April 6th. It's a long shot I think, but fingers crossed :/


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