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)
