Quick Seiss question

[jonathan2141]

Hi, quick quesion about my partners SEISS application if anyone has a minute, thanks in advance.

She earned:

16/17
Employed income £20,000
Self employed -£200

17/18
Self employed £20,000

18/19
Self employed £20,000

HMRC have calculated: -200 + 20000 + 20000 = 39800 for the 3 years

but 16/17 was under 50% of her income, why are they counting this, and is it a mistake?

Thanks

 

[PCD]

Probably correct. The 50% is an eligibility test. Once eligibility is confirmed the payment is calculated using the average over the three years.

 

[jonathan2141]

Probably correct. The 50% is an eligibility test. Once eligibility is confirmed the payment is calculated using the average over the three years.

So doesn't that make 16/17 ineligible as it was under 50% of income that year?

 

[PCD]

No. The calculation uses all three years.

 

[GFI]

So, based on that - she will get a total grant of approx £2500 and can still work?

 

[PCD]

Yes the under the SEISS rules you can continue to work, unlike the CJRS where no work should be done for the employer.

 

[jonathan2141]

So, based on that - she will get a total grant of approx £2500 and can still work?

Can furloughed employees still work, but for other companies, and for themselves?

 

[PCD]

Yes, if their employment contract allows them to work outside of their employment.

 

[Maxwell83]

So doesn't that make 16/17 ineligible as it was under 50% of income that year?

Its a 2 stage test:

First stage - are you eligible? The 50% rule applies. If yes, move to 2nd stage;

Second stage - how much do you get - use all 3 years where there has been S/E income. (no 50% rule here)