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Self-employment aid package

Loss in 2018/19

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Client started his business in late 2018 so did SA for 2018/19, but made a loss, and also had emplyment income for the earlier part of the year. Business has been doing very well in 2019/20 and has been his only source of income for the whole of the year. So will he be eligible for aid?  Chancellor said "last three years", but by the time the aid becomes available ("June") we can have filed the 2019/20 return. 

Suppose we'll have to wait for HMRC detailed guidance, but client is, understandably, anxious - his business has come to a complete stop.

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By agburton
26th Mar 2020 18:06

Rather a duplicate of Sarah P - only just come up! But my client's situation is worse in that he had no profits in 2018/19 (and would also be ineligble on the basis that the majority of his 2018/19 income was not from self-employment unless 2019/20 tax return taken into account).

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By gazzo5000
26th Mar 2020 18:12

And will the profits be taken as after capital allowance? I've had cases as will many where an AIA claim has been made which significantly reduces taxable profit, which could now have a major effect on what the client is going to receive back.

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Replying to gazzo5000:
By memyself-eye
26th Mar 2020 18:20

That scenario is the 'thermal exhaust vent' in many tax returns already submitted: Reduce taxable income by claiming maximum allowances = one (previously) happy client.

Thermal exhaust vent? The fatal flaw in the death star....

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By rdmacc
26th Mar 2020 18:19

2019-20 wont be taken into account he said

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By Wilson Philips
26th Mar 2020 18:21

And so it begins - your last paragraph is the appropriate one. There is absolutely no point at all in asking how it is actually going to work. The same goes for the other questions - different people will have different views on how it will/should work but such opinions are of no use to man nor beast. Clients will of course be anxious to know how it will work. I suggest that you respond as I have already done - “nobody knows”

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