Self-employed grants and unearned income?

[clockworks]

Rules for grants state that they are available when tax returns for 2018/19 have been submitted showing that the majority of income came from self-employment.

I can't find out what constitutes income in this case. Does it include pension income, buy to let income, etc?

I'm fully self-employed as of October 2018, and the majority of my income is now from self-employment.

In 2018/19, I had a part time job for 6 months (£3.5k), a couple of company pensions (£7.6k) and self employment profits of £6.6k.
Self employment income was the majority of my earned income, but not the majority of my total income.

Will I qualify for the grant?

I work from home, so no support from the rates grants or other business subsidies.
I have some savings, so no chance of universal credit.
Business has completely dried up, with no work at all since lockdown was announced. My only income is £650 a month from my pensions.

[megaphone]

Did you make a self assessment? It will be based on the 'profit' you submitted.

[clockworks]

Yes, I've submitted self assessment tax returns since I started the business as a sideline around 20 years ago.
Very low profits at first, because I was working full time, and wasn't advertising at all - word of mouth only. Most of what I earned was put back in, buying tools, etc.

I started pushing the business a bit more around 5 years ago. It grew steadily, and in the summer of 2018 it reached the point where I was earning enough to make an OK living (when added to my pension).

In 2016/17, profit was less than my PAYE part time job, in 2017/18, it was about the same.

If I do qualify for the grant, it won't be much, but if pension income counts as income (i.e. "majority of income comes from self-employment" wouldn't be the case), I won't get anything.

[Damp Logs]

My understanding is to qualify, income from self employment has to be more than 50% of total.

And if that’s not the case for 18/19, an average of last three years is used.

I think pension income is counted as paye.

I’m at the margin, due to taking a dividend from our buy to let company this year, so will see what happens

And I think the maximum is £2500 per month

[Eric Mc]

Sadly, pension income will have to be included in the calculation of the 50%.

I have a number of clients who have decent self employed income but also have significant other income from sources such as rental properties, investments and pensions. As a result, they will get no help, even if their self employment income has been badly affected by the downturn.

[clockworks]

Thanks Eric, at least I won't be wondering when I'd get the letter inviting me to claim.

It's not a great deal of money that I'll miss out on (about £300 a month if it was averaged over the last 3 years), but it would've come in handy to cover bills.
I've only had 2 enquiries in the past 4 weeks. I'm happy to take work in if customers want to leave their clocks on my doorstep, but nearly everyone in my area seems to be taking lockdown very seriously.
Fortunately I've got savings, so it's not the end of the world.

The really annoying thing is I know I'll be paying more tax for years to come as the government tries to pay off the debts, while getting no help at all right now. I guess there are a lot of losers right now, as well as some winners who will get the grants while still being able to work.