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Fifth SEISS Grant

If the conditions for the tax year 2019-2020 are not met, profit over £50,000 what next?

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A client, who did have a taxable profit over £50,000 in the 2019-2020 tax year has found the following on the HMRC website

Stage 2: Tax returns and trading profits
You must have:
submitted your 2019 to 2020 tax return on or before 2 March 2021
trading profits of no more than £50,000
trading profits at least equal to your non-trading income

If you’re not eligible based on the trading profits in your 2019 to 2020 return, we’ll look back at previous years. (This is what caught his eye.)

How do the results of the previous years come into the reckoning? Does the fact that he had profits in excess of £50,000 in 2019-2020 disqualify him immediately?

Replies (4)

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By Truthsayer
02nd Aug 2021 10:08

Obviously, this means only when there are earlier years of trading, so your client is ineligible.

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By Cat's whiskers
02nd Aug 2021 10:32
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By gainsborough
02nd Aug 2021 10:37

I can't see that the OP has mentioned that the client didn't trade before 19/20?

HMRC will use the tax year 2019/2020 or
An average of the tax years 2016/2017, 2017/2018, 2018/2019 and 2019/20 - if taxpayer is not eligible based on 2019/20 alone.

Lots of previous threads on this and also guidance on

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By jonharris999
02nd Aug 2021 14:04

Directions for Round 4, para 5.2.2 - still apply to Directions for Round 5.

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