As with the four previous grants, it is taxable and will be paid out in a single instalment, and this blog post talks about who is eligible and what you can expect to receive.
"You must be self-employed or in a partnership!"
Additionally, you must have traded in the tax year 2019/20 and submitted a tax return on or before the 2nd of March 2021. You must still be trading in this tax year, but have been impacted by reduced demand due to coronavirus. You could also have suspended trading due to lockdown restrictions.
Trading profits for 2019/20 can not be more than £50,000 and at least be equal to your non-trading income. If you're not eligible based on this, HMRC will look at previous tax years back to 2016/17.
You should also declare your intent to continue trading, and you reasonably believe that there will be a reduction in your trading profits due to reduced business activity from May 2021 to September 2021.
"And you must keep evidence that shows your business has been impacted!"
HMRC has announced that a turnover reduction of 30% or more will get you an 80% grant of 3-months average trading profits, capped at £7,500. A reduction of less than 30% will get you 30% of 3-months of your turnover, capped at £2,850.
You should receive an email from HMRC by mid-July if you're eligible, and they'll give you a date you can claim from via the Government Gateway.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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