SEISS grant to be 80% of average profits
The self-employed income support scheme (SEISS) will be open for two further grants, the first of which will be set at 80% of average profits. This article has been amended with new information released on 5 November 2020.
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The most annoying feature of the SEISS is that it takes no account of business running costs. My profits have been quite minimal over the seven years that I've been a sole trader, with the last two payments serving on each occasion to cover one month's rent payments on my premises and little else.
I have to keep the premises in order to store and maintain my somewhat substantial stock of equipment which I use in the events industry. If I got rid of the equipment I would have no business to resume once all this pandemic faff has gone away.
Is the 80% just available in England. Average monthly profits x 80% + AMP x 40% + AMP x 40%.
If someone from the rest of the UK applied would it be averaged at AMP x 40% x 3 months.
Is the 80% just available in England. Average monthly profits x 80% + AMP x 40% + AMP x 40%.
If someone from the rest of the UK applied would it be averaged at AMP x 40% x 3 months.
Is the 80% just available in England. Average monthly profits x 80% + AMP x 40% + AMP x 40%.
If someone from the rest of the UK applied would it be averaged at AMP x 40% x 3 months.
Apologies if this has been answered elsewhere already, but isnt 80% for one month, and 40% for two month 53.33% ? How do you arrive at 55% ?
Rather than trying to work out why he'd got the percentage wrong, he might as well just change it back to 80%. Much easier. Or maybe it's actually 71% and he's rounding it up again. Not that it matters, it could be anything by this time next week.
Re Average profits of £50K or less doesn't HMRC look at profits of 18/19 OR the average of 16/17, 17/18 & 18/19. Does that mean if 18/19 profits are £50K but the 3 year average is above £50K you still qualify?
Rebecca says for SEISS3 'The business has been adversely affected by the covid-19 pandemic in the period from 1 November 2020 to the date of the claim.' But that isn't actually what HMRC have said. The 'adversely affected' condition was SEISS1 and SEISS2. For SEISS3 and SEISS4 it has been replaced with:
'either:
'are currently actively trading but are impacted by reduced demand due to coronavirus
'were previously trading but are temporarily unable to do so due to coronavirus
For example. Trader incurs a bad debt because a customer has gone bust because of covid. That meets 'adversely affected' for SEISS1+2 but fails 'reduced demand' for SEISS3+4.
Another example, the purchase of PPE to enable covid-safe trading meets the 'adversely affected' condition for SEISS1+2, but purchase of PPE is not a 'reduced demand' for SEISS3+4.
See https://www.gov.uk/government/publications/self-employment-income-suppor....
Just a note about the Minimum Income Floor.
It is currently suspended until end of April 2021.
Therese Coffey's announcement:
https://questions-statements.parliament.uk/written-statements/detail/202...
Forgive me (if I have not read it properly), when can clients claim the latest SEISS grant).
Applications open from Nov 20th
https://www.gov.uk/government/publications/self-employment-income-suppor...
SEISS does not help those “self employed” taxpayers who trade via a Limited Company.PreCovid these individuals would receive money by way of dividends and minimal directors’ pay under PAYE from their limited companies.
Why can’t the Chancellor help these individuals?
HMRC suggested it was too complicated to undertake the calculations.
Or is it because HMRC are annoyed that IR35 is not working, and the Government is trying to force the above mentioned individuals to receive their pay fully under PAYE, which then entitle them to join the furlough scheme.
Sceptic Of Dorking