HM Revenue & Customs have today released a guide detailing how it will assess eligibility for the Self Employment Income Support Scheme for sole trader businesses that have been affected by COVID-19.
The guide sets out how the profits will be calculated, on which the grant will be based. There are no real surprises, although it is worth noting:
- Losses brought forward are not taken into consideration
- Capital allowances will be taken into account
The fact that capital allowances are taken into account could mean that for those which purchased a large item of equipment, such as a new van, and have taken advantage of the Annual Investment Allowance will be disadvantaged as their profits will be much lower and therefore will impact the grant they are entitled to. In certain circumstances, it could also mean they are not eligible for the scheme at all.
You can find the full guide by following the link below.