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Updated guidance on #SEISS published today by @HMRCgovuk, including how to work out your total income and taxable profits for the SEISS.
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme 1/16
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme 1/16
#SEISS - How is requirement to show trading profits have been lost as result of #COVID19 to be determined? You'll need to confirm to HMRC that your business has been adversely affected by C19. HMRC will use ‘risk based approach’ to check compliance https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 2/16
#SEISS - Is it possible to amend a 18/19 tax return before 23/4/20, eg if using cash basis, trading allowance or had claimed CAs, and reported lower profits as a result?
No, amends to 18/19 return after 26/3/20 won't be taken into account for SEISS https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 3/16
No, amends to 18/19 return after 26/3/20 won't be taken into account for SEISS https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 3/16
#SEISS - HMRC’s guidance says a member of a partnership can make a claim and it is their trading profits and total income which should be looked at in working out if they meet the eligibility criteria. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 4/16
#SEISS - If someone had started trading during the 2018/19 tax year, will their income be extrapolated to be expressed as an annual rate? This has been raised with HMRC and we are awaiting a response. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 5/16
#SEISS - Can the 2018/19 returns be filed on a paper return before 23 April 2020, especially as there is no free online return for partnerships? This has been raised with HMRC and we are awaiting a response. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 6/16
#SEISS - For self-emp who started trading during 19/20, would it be possible to submit a 19/20 return before 23/4/20 to receive SEISS? We're waiting to hear. For now, unfortunately, if you did not submit a 2018/19 return showing self-emp income you are not eligible for SEISS 7/16
#SEISS - Scheme not open yet; taxpayers are being asked NOT to contact HMRC but to wait for HMRC to contact them. HMRC will use tax returns already submitted to contact individuals identified as eligible by mid-May & invite them to apply online thru http://GOV.UK 8/16
#SEISS Be careful of fraudsters using texts, telephone calls or emails pretending to be HMRC or the government and requesting your bank account details. You will be asked to access the SEISS through http://GOV.UK . https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 9/16
#SEISS - Will taxpayers have to deal with applying for the SEISS themselves or can they ask their authorised agents to apply for them? We do not know yet if agents will be able to apply on their clients’ behalf. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 10/16
If you had loans impacted by loan charge, you’re going to declare a LC or settle yr DR scheme involvement with HMRC by 30/9, & you’re going to claim a grant thru #SEISS, grant will be based on either ave. of tax yrs 16/17 & 17/18 or tax yr 17/18 if you were not s-e in 16/17 11/16
#SEISS for those in loan charge (cont) - You should file your S-A return for 18/19 by 30/9/20. It does not have to be submitted by 23/4/20. See HMRC’s guidance on the DR loan charge on http://GOV.UK (updated 7/4/20) https://www.gov.uk/guidance/report-and-account-for-your-disguised-remuneration-loan-charge https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 12/16
#SEISS - What if an individual is self-emp with more than one trade at same time? Do you combine them?
Yes, if a person has more than 1 trade in the same tax year, HMRC will add together all profits & losses for all trades to work out trading profit. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 13/16
Yes, if a person has more than 1 trade in the same tax year, HMRC will add together all profits & losses for all trades to work out trading profit. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 13/16
#SEISS - How does it work when taxpayer has made loss in one of the tax yrs on which the grant will be based?
In-yr losses are taken into account as well as profits in calculating a person’s eligibility for grant and amount of grant they will receive https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 14/16
In-yr losses are taken into account as well as profits in calculating a person’s eligibility for grant and amount of grant they will receive https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 14/16
#SEISS - If an individual has remained self-emp throughout the 16/17, 17/18 & 18/19 tax years but has changed what they do, eg, running a café, then closing it down and becoming a window cleaner, does this matter? No, so long as the periods of self-employment are continuous 15/16
#SEISS - Property lettings businesses are not regarded as a trade so landlords will not qualify for SEISS. Furnished holiday lettings are only considered a trade for certain purposes. At the moment, it does not appear they will qualify for SEISS https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 16/16
#SEISS - Are ‘trading profits’ pre or post farmers’ averaging relief? HMRC will use the profit before farmers’ averaging relief to work out whether a person is eligible to claim the grant and how much grant they will receive. https://www.tax.org.uk/policy-and-technical/covid-19/self-employment-income-support-scheme 17/16 (oops!) END OF THREAD
