Taxi Driver Online

Not clear whether they're using 2019-20 to calculate the grant figures, though, rather than simply for whether you're eligible.

And a couple of lean months shouldn't make too much difference for the grant figures anyway, assuming they're still using a three year average. By the looks of it they haven't actually decided that yet, but let's hope they don't base it *only* on 2019-20, which could then make a good bit of difference

Not to me, personally, because my 2019-20 tax return based on year ended 30 November 2019, thus before it all happened, and my profit wasn't hugely different to previous years.

Not sure he said that, at least in the bit of the speech I saw, although that was what I was assuming would happen, and the latest tax returns would only impact on the newly self-employed.

But this is the official HMRC blurb published since then:


But the highlighted word 'may' suggests they haven't actually decided yet


£5,000??

Pedantic point - even if the same figures *are* used, the second grant was of course calculated at 70% rather than 80%.

Got email from HMRC tonight, and it looks like it will be averaged over the four years rather than three, as I suggested earlier:

So if that includes early 2020 for you, and you did badly then because of Covid, then that would bring your numbers down a bit. But, in truth, a couple of lean months won't be catastrophic over a four year average.

As I said, my financial year ended on 30 November 2019, and it wasn't a whole lot different to the previous three years on which past grants were based, so my future grants shouldn't be a whole lot different.

Of course, it could even work in your favour if your latest tax return showed an increase in profits

So suppose your average profit over the three years they've been using was £20,000.

Your last grant @ the 80% rate would have been £4,000.

So in the last tax year, suppose you lost £4,000 profit because of Covid, and your profit was £16,000.

Your average over the four years would then be £19,000. Your grant @ 80% would be £3,800.

So you'd lose £200 for the three month grant @ 80%. Not good, but hardly a catastrophe.

And that's maybe a worse case scenario - I've assumed profits for the tax year to April 2020 are down 20% because of Covid, which is probably unlikely because lockdown only covered a couple of months.

In fact my profit for the last tax year was up slightly on the three-year average, so if my figures are correct my next grant will be about £12 higher

Anyway, all that's assuming they're averaging profits over the past four years rather than three.

And, of course, your profits for the last tax year could have gone up or down significantly for reasons other than Covid

I have seen the 5th grant stated on the internet as based on 2020/2021 turnover so presumably to qualify we'll have to be early with our tax returns

which for the IR is probably a great deal of hard work as they will not normally have to deal with many that early

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Taxis Are Public Transport too

Join the campaign to get April fools jokes banned for 364 days a year !

I don't think that is correct.

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Grandad,
old fart with no heart

Just received an email saying I can claim 4th grant on the 23/4/21.

Which just happens to be St George’s Day.

Check your inboxes fellas.

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IDFIMH