We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
SEISS 3 - Another Thread!
Options
SJW1510
Posts: 18 Forumite
Hi all,
I know there have been lots of threads about what the eligibility for SEISS 3 actually means but I'm genuinely stuck. I've read all the guidance and there seems to be the idea that HMRC will look at your total trading profits for this year to see if they reduce. This will allow them to retrospectively check your claim for SEISS 3 and make sure no-one received money fraudulently. Although SEISS 3 is from November apparently they are looking at the year as a whole to see if you suffered a significant reduction in demand or capacity.
My issue is that in previous years I didn't earn a huge amount. I have two disabled children and it's hard juggling it all. It's getting easier as they're getting older and my earnings were starting to increase. At the beginning of 2020 I landed a really lucrative contract which I would have had alongside other smaller contracts. By May this large contract had massively dropped due to COVID and in October it was cancelled entirely. I'm very lucky as I've been able to continue working but earning much less money than anticipated. Compared to the beginning of the year my income has suffered a substantial reduction and due to COVID I lost this contract and have been unable to replace it like for like. Although there's work out there, the budget seems to have dropped for most companies so it's low value contracts and huge competition. I would therefore seem to qualify for SEISS 3 as I've lost out and believe me, the money would help so much. Things are always very tight. The issue is, compared to previous years my income has increased. I had several months of this high-value contract and even in a reduced capacity it bumped up my profits. From November onwards, I don't have any income from it at all even though it was originally planned to run for two years. So have I lost income significantly due to COVID? Yes. But will HMRC be able to see that when they look at my final profits for this year? No......
I don't want to store up trouble for myself further down the line, but equally, it would really help a lot if I am eligible to claim.
Any thoughts please??
I know there have been lots of threads about what the eligibility for SEISS 3 actually means but I'm genuinely stuck. I've read all the guidance and there seems to be the idea that HMRC will look at your total trading profits for this year to see if they reduce. This will allow them to retrospectively check your claim for SEISS 3 and make sure no-one received money fraudulently. Although SEISS 3 is from November apparently they are looking at the year as a whole to see if you suffered a significant reduction in demand or capacity.
My issue is that in previous years I didn't earn a huge amount. I have two disabled children and it's hard juggling it all. It's getting easier as they're getting older and my earnings were starting to increase. At the beginning of 2020 I landed a really lucrative contract which I would have had alongside other smaller contracts. By May this large contract had massively dropped due to COVID and in October it was cancelled entirely. I'm very lucky as I've been able to continue working but earning much less money than anticipated. Compared to the beginning of the year my income has suffered a substantial reduction and due to COVID I lost this contract and have been unable to replace it like for like. Although there's work out there, the budget seems to have dropped for most companies so it's low value contracts and huge competition. I would therefore seem to qualify for SEISS 3 as I've lost out and believe me, the money would help so much. Things are always very tight. The issue is, compared to previous years my income has increased. I had several months of this high-value contract and even in a reduced capacity it bumped up my profits. From November onwards, I don't have any income from it at all even though it was originally planned to run for two years. So have I lost income significantly due to COVID? Yes. But will HMRC be able to see that when they look at my final profits for this year? No......
I don't want to store up trouble for myself further down the line, but equally, it would really help a lot if I am eligible to claim.
Any thoughts please??
0
Comments
-
The idea that HMRC will compare profits for 2020/21 with 2019/20 (for someone with a year end of 31 March or 5 April) to establish eligibility for SEISS 3 is wrong. There is no basis for it. You are comparing what you expect your trading to be in the period 1 November 2020 to 29 January 2021 with what you would have expected them to be without coronavirus. From what you say, you would have had a substantial contract going during this period, but due to coronavirus you will not. See
https://www.gov.uk/guidance/how-your-trading-conditions-affect-your-eligibility-for-the-self-employment-income-support-scheme
0 -
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards