Self Employed Furlough Allowance and being a Landlord

Cherylbt123

Hi  I have a small therapy business which I have had for 16 years, and also work as a self employed therapist.  I thought I would be entitled to the furlough allowance for self employed people who can show 3 years of accounts.  However I have been told by my accountant I am not eligible for this because over 50% of my income comes from renting rooms out of my therapy centre.  However due to Covid19 I am not receiving any income whatsoever, from the therapy centre.  However I do still have all the usual outgoings such as utilities etc.  Can this be correct?  

Jeremy535897

Your accountant is correct that you do not qualify for SEISS. If you were on the rating list at 11 March 2020, and the property qualified for SBRR, you might be enttled to the small business grant. See:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878082/small-business-grant-and-retail-leisure-hospitality-grant-guidance-for-businesses-v2.pdf

If not, see https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme

Sometimes you can treat rental income as trading income, but your accountant has concluded that you cannot. See
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4300

Cherylbt123

Many thanks Jeremy - That's so helpful.  

Grumpy_chap

Is a bounce-back loan a possibility?  That could be a means to see yourself through until you can start offering treatments and rent the rooms out again.

Cherylbt123

Grumpy_chap said:

Is a bounce-back loan a possibility?  That could be a means to see yourself through until you can start offering treatments and rent the rooms out again.

Thank you.  Worth looking into.  ;-)