Partner A would be eligible for the grant, as the trading profits received are no more than £50,000. We’ll look at your previous returns to work out if you’re eligible. You would not be eligible based on your 2019 to 2020 tax return alone because your non-trading income is greater than your trading profits. In your 2019 to 2020 Self Assessment tax return you made a loss of £10,000 and your non-trading income was £15,000.

Example – if you’re not eligible based on your 2019 to 2020 tax return If you have a gap in the years you’ve traded, we’ll only use your most recent tax returns after the gap, to work out your eligibility. an average of the tax years 2016 to 2017, 2017 to 2018, 2018 to 20 to 2020 - if you are not eligible based on 2019 to 2020 alone.We’ll work out your eligibility based on your tax returns for either: We’ll only use your trading profit and non-trading income from your 2019 to 2020 tax return to work out if you’re eligible. equal to or more than your non-trading income.To be eligible for a grant, your trading profits must be both of the following: If you have different circumstances it can also affect your eligibility. How we work out your eligibility may depend on how many years you have been trading. How we work out your trading profit and non-trading income eligibility miscellaneous income (including taxable social security income).We’ll work out your non-trading income by adding together all your: This is the amount recorded as ‘total income received’ on your online or paper tax calculation, less your trading income. Trading profit if you have claimed the trading allowance Your trading profit after allowable business expenses is shown on your tax return as ‘profit’. We’ll work out your share of the partnership’s profit after adjustments by adding any losses brought forward from previous years to the amount shown as ‘your share of the total taxable profits from the partnership’s business’.Īny non-trading income, such as investment income, will be deducted from the partnership’s total income before we work out your share of the profits. We’ll work out your trading profit after allowable business expenses by adding any losses brought forward from previous years to the amount shown on your tax return as ‘total taxable profits from this business’. any losses brought forward from previous years.We’ll not deduct from your trading profits:

We’ll work out your trading profit after deducting any tax-free allowances. If your annual gross trading income, from one or more trades or businesses is more than £1,000 you may have used the tax-free allowances, instead of deducting any expenses or other allowances. We’ll work out your total trading profit after deducting any allowable expenses such as: This is shown on your tax calculation as profits from either: We also use your average trading profits to work out how much grant you’ll get. HMRC look at your trading profits and non-trading income on your Self Assessment tax returns to check if you meet the eligibility criteria for the fifth grant.

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