What Happens If Seiss And Tax Credit

pateire

i wonder if someone can help me out,and confirm my thoughts
im im right in thinking, that if i and my  wife takes the seiss for our partnership
then we have to add this as income for the year
we could lose our entitlement to tax credit if it takes us over our limit
thanks

calcotti

The SEISS grant is taxable income which must be declared as part of your 2020-21 income so could affect your tax credits. However as you are only eligible for the SEISS if you declare that you have lost income as a result of COVID-19 one would not expect you to have a large gain overall.

Splatfoot

As it will be an average of what you would have earned, 80% of it, it shouldn't take you over what you would normally be bringing in a month unless you were still working pretty much as normal. Which in that case you shouldn't really claim.

Jeremy535897

If your business has been adversely affected by coronavirus, you are entitled to claim SEISS. It is a broad brush scheme, and nobody expects claimants to look at whether they will be better or worse off after receiving the grant than they might have been without coronavirus.

Think of SEISS as just another sale. You don't refuse a sale even if it would reduce your tax credits, because the profit on the sale is worth more than the loss of tax credits that might ensue.