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Trading Profits for Self employment payment

which figure will HMRC use

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HI There

 

I hope you are all smiling an keeping safe during these distressing times!  I am calculating the self employment payment for my self employed clients - I understand how it's worked out - that's simple enough - however, which figure are they using - i understand they say trading profits .  The question is this....is this trading profits before or after capital allowances.  To me, any profits after capital allowances are adjusted net profits.   I have asked several of my accountant friends and we are all divided!

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By Duggimon
30th Mar 2020 16:43

I would refrain from offering to calculate the payment for clients until after the guidance on how it will be calculated is published.

I don't think it's helpful to them or to you for you to try and guess it now, I would just point them to the government page detailing the measure and advise you'll let them know if you hear anything more.

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By Lee11_1989
30th Mar 2020 17:11

I've been honest with clients by saying that we just don't know which figure the guidance is referring to.

My gut says it will be the taxable amount (adjusted net profit).

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Replying to Lee11_1989:
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By [email protected]
30th Mar 2020 17:23

Hi Lee

Thanks for your positive answer. Yes, that's how i'm answering at the moment - I have now found a number for HMRC that is dealing with coronavirus enquiries regarding these payments. If you need it, it is
0800 024 1222

so I will call them in the morning as they are only open until 4pm

Again, thank you for your help, stay safe and keep smiling!

Su

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Replying to [email protected]:
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By paul.benny
30th Mar 2020 17:54

I very much doubt that HMRC have any more information than has already been announced- and in any case, no-one will be able to claim for some weeks yet.

So don't waste their time by calling.

Thanks (1)
Replying to Lee11_1989:
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By [email protected]
30th Mar 2020 17:23

Hi Lee

Thanks for your positive answer. Yes, that's how i'm answering at the moment - I have now found a number for HMRC that is dealing with coronavirus enquiries regarding these payments. If you need it, it is
0800 024 1222

so I will call them in the morning as they are only open until 4pm

Again, thank you for your help, stay safe and keep smiling!

Su

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Replying to [email protected]:
By Duggimon
30th Mar 2020 22:05

The government guidance on the measure specifically asks you not to call.

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