I have a sole trader who averages £36,000 profit per annum so will qualify for the grant. If in March April and May 2020 his income is not adversely effected to a great degree, say £2000 profit per month can he still claim the grant and how will it be clawed back or taxed in 2020/21 ?
Replies (6)
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The guidance is here:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-...
It starts by saying
Use this scheme if you're self-employed or a member of a partnership and have lost income due to coronavirus.
We're still waiting for the nuts and bolts of the grant.
Whatever anyone says now cannot be relied on.
However, there has been some vague implication that profits must be adversely affected.
I agree and won’t be surprised if there’s an effective claw back on a £ for £ basis on profits above the 3 year average for 2020/21 or above 50k. Also surely there will be a declaration of some form of your income for the 3 months on the application.
I don't see how there can be if these payments are to be made in early June.
My understandin g is that, if your average profits are £50000+, you get nothing.
Still, remains to be seen ....
At the moment, per what we know, he can claim, he'll get the same as everyone else and it's treated as taxable income for 2020/21.
That may not be the whole story but it's all we have.
@ David Doyle (OP).
Almost certainly there will be no restriction. Whilst one might be able to calculate an estimated profit figure for a decorator, with private clients, it would be a sheer impossibility for (as but one of countless examples) a partner in a farming partnership.
Basil.