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Still eligble for 80% scheme if stops trading?

Client was due to start as a Ltd Co from 6 April....can he still claim the 80% self-emp scheme?

Didn't find your answer?

We set up a Limited Company for a client with the intention of ceasing self employment on 5 April and starting as Ltd Co on 6 April.

His profits as a sole trader have been really good the last couple of years and so 80% of the average at a monthly rate is a decent amount. The rules state they must still be trading (which he is at the moment) however I'm assuming that if he stops self employment during this period of March/April/May then he wont be able to claim (or maybe just a proportion).

Has anyone seen anything on this scenario at all?

Many thanks

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JCACE
By jcace
27th Mar 2020 21:42

The guidance says that he must "have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020 to 2021."
So it's a matter of intention, I guess.

Thanks (1)
Replying to jcace:
RLI
By lionofludesch
27th Mar 2020 23:06

If he doesn't trade in 2020/21, I dare say his intentions might be challenged.

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By chicka
28th Mar 2020 09:06

Thank you. I appreciate you taking the time to respond! Confirms my thoughts.

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