A client of mine when he checked his eligilibility was advised online that he wasnt eligible. I believed he was as his earnings in 2018/19 were below £50,000 and his self employed earnings were over 50% of his total income. I went through the appeal procedure online and had a call from the Revenue today advising he wasn't eligible because his average three years profits were over £50,000.
However, his taxable earnings for 2018/19 were under and the guidance says they look at this year first and I believed they only looked at the other years if he wasn't eligible in 2018/19. Have I misunderstood this?
Before I give the client the bad news, are HMRC right or should I appeal again?
FYI his figures are approximately 2018/19 - total income £42k (s/e is £26k), 2017/18 total income £100k (s/e 36k), 2016/17 total income £45k (s/e £33k).
Average total income works out at £62k so I can see why he wouldn't be eligible on this basis, but on 2018/19 he definitely is.