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Slacky

  • Posts: 8279
Re: 80% but its taxed dont forget..
« Reply #20 on: March 28, 2020, 11:25:14 am »
It's based on the assumption that you are going to lose income.
If it's taxed fully, like normal and includes class 4 plus class 2 NI, then you are looking at a total of approx. 30% tax to be deducted.

I don't think you will have to prove anything much, it's based on what the HMRC already know.

20k average profit over 3 years
80% of 20k = 16k
16k /12 = £1.333
£1.333 x 3 = £3.999


So, based on an average profit of 20k over the last 3 years, you are eligible for £1,333 per month. I think it will arrive as One payment of £3,999. It is then subject to tax.

That is exactly how it will pan out.

KS Cleaning

  • Posts: 3955
Re: 80% but its taxed dont forget..
« Reply #21 on: March 28, 2020, 11:26:36 am »
It's based on the assumption that you are going to lose income.
If it's taxed fully, like normal and includes class 4 plus class 2 NI, then you are looking at a total of approx. 30% tax to be deducted.

I don't think you will have to prove anything much, it's based on what the HMRC already know.

20k average profit over 3 years
80% of 20k = 16k
16k /12 = £1.333
£1.333 x 3 = £3.999


So, based on an average profit of 20k over the last 3 years, you are eligible for £1,333 per month. I think it will arrive as One payment of £3,999. It is then subject to tax.
And there you have it. Gold medal to Peavey 🥇

G Griffin

  • Posts: 40745
Re: 80% but its taxed dont forget..
« Reply #22 on: March 28, 2020, 11:42:19 am »
i can not see hmrc paying the full £2500 per month if you only lose £100s worth of work surely they will just replace the £100

Other wise they are opening a can or worms for creative accounts where a window cleaner makes a few cash jobs disappear to  create the illusion of a covid-19 loss

this grant is more for the commercial cleaners and people like my brother who has been  laid off because they are having trouble getting the copper for roofing projects
I don't think that you'll have to prove how much that you've lost. How can you?
Say we get the money in June, you could lose money later in the year. You could lose a load of work later in the year or get ill well after the payment.
This crisis will extend well beyond June.

Can’t be proven, what about the work that could have been - all new walk ups etc , that’s potentially lost business
True, but it's based on previous years earnings.
What I mean is, it's to tide us over for the next few months. Even if someone continues working and doesn't need it now, they might need it later in the year. I know there may be further grants, there might have to be, but I think I'd sooner have the money in the bank rather than ask for it to be backdated.
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Kev Martin

  • Posts: 6954
Re: 80% but its taxed dont forget..
« Reply #23 on: March 28, 2020, 01:27:51 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?
"Natural Stone Restoration Specialists" Tel: 0121 773 9129
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֍Winp®oClean֍

  • Posts: 1688
Re: 80% but its taxed dont forget..
« Reply #24 on: March 28, 2020, 01:41:08 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?

My interpretation here is that the "up to" is in regards to the maximum amount paid in ££ and NOT the %%. The statements read "will" in regards to the % and "up to" in regard to the maximum ££.

"This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

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.

How much you’ll get-

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
2016 to 2017
2017 to 2018
2018 to 2019
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.
It will be up to a maximum of £2,500 per month for 3 months.
We’ll pay the grant directly into your bank account, in one instalment.

How to apply-

You cannot apply for this scheme yet.
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

AND, just make clear, a government grant is not a loan. You will not have to pay this amount back (well, not directly. We'll pay collectively, within future taxes more than likely)
Comfortably Numb!

p1w1

  • Posts: 3873
Re: 80% but its taxed dont forget..
« Reply #25 on: March 28, 2020, 02:11:44 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?
Yes it is 80% (not up to) but with a maximum of £2500.

G Griffin

  • Posts: 40745
Re: 80% but its taxed dont forget..
« Reply #26 on: March 28, 2020, 02:12:31 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?
I think you're wrong.
It's a flat rate of 80%, isn't it?

Has anyone wondered what'll happen if there are further restrictions after 3 months? Will Sunak get his wallet out again?
I'm not after enough fat Czech; one's enough.
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KS Cleaning

  • Posts: 3955
Re: 80% but its taxed dont forget..
« Reply #27 on: March 28, 2020, 02:21:14 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?
I think you're wrong.
It's a flat rate of 80%, isn't it?

Has anyone wondered what'll happen if there are further restrictions after 3 months? Will Sunak get his wallet out again?
I'm not after enough fat Czech; one's enough.
I think his wallet will be empty.

Dave Willis

Re: 80% but its taxed dont forget..
« Reply #28 on: March 28, 2020, 02:21:45 pm »
I’m sure his ears get bigger with every announcement. Pinocchio thing going on there!

G Griffin

  • Posts: 40745
Re: 80% but its taxed dont forget.. New
« Reply #29 on: March 28, 2020, 02:41:17 pm »
I think most of you are misinterpreting this both the employed and the self employed.  To start with you are all missing the little word which is UP to 80%.  Secondly it is only payable for the employed if they can't or don't work and are Furloughed by their employers.  The majority consensus on here appears to be the self employed are going to get UP to 80% averaged over their last 3 Tax Returns?  So am I right in thinking that the majority of you are of the opinion you are going to get 80% Lump Sum Pay Out whether you work or not or am I missing something?
I think you're wrong.
It's a flat rate of 80%, isn't it?

Has anyone wondered what'll happen if there are further restrictions after 3 months? Will Sunak get his wallet out again?
I'm not after enough fat Czech; one's enough.
I think his wallet will be empty.
Aye, the police will dragging us out of our homes and forcing us to go to work.
And co-vid will be smirking and rubbing it's hands together thinking of seconds.
If viruses have hands, that is.
And if they do, do they wash them to prevent the spread of other viruses?
Or do they just not shop at Tesco?
Or hug?
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NWH

  • Posts: 16952
Re: 80% but its taxed dont forget..
« Reply #30 on: March 28, 2020, 02:43:13 pm »
The system has not even been constructed yet I’ve been informed,the reason why it will take so long is for this reason it’s not even been built.

deeege

  • Posts: 5008
Re: 80% but its taxed dont forget..
« Reply #31 on: March 28, 2020, 02:47:31 pm »
All the business grants are repayable as well so if your business doesn’t get back on its feet after this straight away you could be left with a big debt. No business rate grant if you work from home as it’s classed as domestic rates. Any monies granted in whatever form will have to be paid back via tax in the future. No financial help for Directors of SMEs Ltd companies.  So for me with a small Ltd company no financial help at all even though we are self employed. Just an overdraft if you want it to be repaid sometime in the future. Mortgage holidays will incur compound interest and a £60 admin fee to be added to the mortgage then every month you ‘have a holiday’ interest is added and so forth. Businesses are going to be knackered, make no mistake. It will be like starting up all over again.

That’s not true Denise.

There are various business loans available that are replayable with interest but the grants are not repayable, hence why they are called grants.

Below is taken from .gov site:-

Support for businesses that pay little or no business rates
The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Eligibility
You are eligible if:

your business is based in England
you are a business that occupies property
you are receiving small business rate relief or rural rate relief as of 11 March
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."