Confused about the support for self employed

[NYKeys]

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

• having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

 

 

But I'm confused how this applies to partnerships. Let's say my business (it doesn't, but let's say it does) has £60K as the bottom line net profit on the accounts for last year. This is split, let's say, between my wife and I - £30K each.

Does anyone know how this does or doesn't apply given the strange (to me) wording above about my self employed trading profits being less than £50k??

Anyone in the same boat?

[grahamparker]

Your accountant will be the best placed to answer your questions Dan.

Mine has been on top of this from day one with daily e-mails updating on what we can claim for and has always been avaialble to talk to over the phone.

One thing he has said he will NOT charge 1 penny extra for helping his clients through this difficult time.

Might not be the cheapest but you get what you pay for and his company although small are extremly proffesional and helpful.

A true Gent.

[petercoulson]

1 hour ago, grahamparker said:

Your accountant will be the best placed to answer your questions Dan.

Mine has been on top of this from day one with daily e-mails updating on what we can claim for and has always been avaialble to talk to over the phone.

One thing he has said he will NOT charge 1 penny extra for helping his clients through this difficult time.

Might not be the cheapest but you get what you pay for and his company although small are extremly proffesional and helpful.

A true Gent.

Same with our although they cost enough to start with, this is definitely one for your accountant to answer - perhaps you could post when you find out for us all to see

[Flash]

2 hours ago, petercoulson said:

Same with our although they cost enough to start with, this is definitely one for your accountant to answer - perhaps you could post when you find out for us all to see

The way I read it is if a business, sole trader,  partnership or whatever, has submitted account which shows profits of less than £50,000 will be eligible to receive a payment. You don't have to claim, the DWP will contact you. Don't hold your breath.