Significant reduction
Changes to this element require claimants to work with a certain level of vagueness and anticipation, as the government confirmed: “Before you make a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.
“HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.
“You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.”
Fortunately, there are examples of applicable scenarios on the government’s website which can help claimants work out if they’ll receive payments.
