For the third grant, HMRC will check if you meet the eligibility conditions that are based on your trading profits and non-trading income on your Self Assessment tax returns.
You will then need to decide if you meet the other eligibility criteria.
If you’re eligible for the third grant, you can make a claim on or before 29 January 2021.
Find out how different circumstances can affect eligibility to the scheme, or amount of grant.
Trading profits
This is shown on your tax calculation as either profits from:
We will work out your total trading profit after deducting any allowable expenses such as:
If your annual gross trading income, from one or more trades or businesses is more than £1,000 you may have used the tax-free allowances, instead of deducting any expenses or other allowances.
We will work out your trading profit after deducting any tax-free allowances.
We will work out your share of the partnership’s trading profits by taking all partnership income, and then deduct anything that is non-trading income, such as investment income.
We will not deduct from your trading profits:
- any losses brought forward from previous years
- your personal allowance
Profits from self-employment
We will work out your trading profit after allowable business expenses by adding any losses brought forward from previous years to the amount shown on your tax return as ‘total taxable profits from this business’.
Profits from partnerships
We will work out your share of the partnership’s profit after adjustments by adding any losses brought forward from previous years to the amount shown as ‘your share of the total taxable profits from the partnership’s business’.
Paper short return
Your trading profit after allowable business expenses is shown on your tax return as ‘profit’.