HMRC calculations for the Self-employment Income Support Scheme

How HMRC works out total income and trading profits for the Self-employment Income Support Scheme

Eligibility

Your trading profits must be no more than £50,000 and more than half of your total income for either:

• the tax year 2018 to 2019
• the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019

 

Example 

	2016 to 2017	2017 to 2018	2018 to 2019	Average for the 3 tax years
Trading profit	£50,000	£50,000	-£10,000	£30,000
Pension income	£15,000	£15,000	£15,000	£15,000
Total income	£65,000	£65,000	£5,000	£45,000
Trading profit are more than half of your total income	Yes	Yes	No	Yes

So even if you made a loss in the tax year 2018 to 2019, you would still be eligible for the grant because your average trading profit for the 3 tax years:

• is £30,000 - which is less than £50,000
• is more than half of your total income of £45,000

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