Seiss grant 3 and 4 advice

Jeremy535897

macman said:

Thecreative said:

Well I'm not in the top bracket, the grant was based on 28,000 - The government need to be clearer and say what they are expecting they cant possibly leave it so unclear, I've already made the third claim which I'm happy enough about meeting the criteria I will assess the fourth but to be honest I think a lot of people are going to claim then see what happens.

Precisely. The worst that can happen is that you get declined. If you received it and were later asked to pay it back, then you'd be in no different a position than if you had applied for finance in the form of a BBL or other loan. 

So long as you can show that you didn't fall foul of paragraph 13 schedule 16 FA 2020:

"Penalty for failure to notify: knowledge of non-entitlement to payment

13(1)This paragraph applies to a failure of a person to notify, under section 7 of TMA 1970 (as modified by paragraph 12), a liability to income tax chargeable under paragraph 8 where the person knew, at the time the income tax first became chargeable, that the person was not entitled to the amount of the coronavirus support payment in relation to which the tax is chargeable.

(2)Schedule 41 to FA 2008 (failure to notify) applies to a failure described in sub-paragraph (1) as follows.

(3)The failure is to be treated as deliberate and concealed.

(4)Accordingly, paragraph 6 of that Schedule has effect as if the references to a penalty for “a deliberate but not concealed failure” or for “any other case” were omitted.

(5)For the purposes of that Schedule (except in a case falling within paragraph 14 of this Schedule), the “potential lost revenue” is to be treated as being the amount of income tax which would have been assessable on the person at the end of the last day of the notification period (see paragraph 12(3))."

Thecreative

Thanks All.

I've just read an article on an accounting website saying 'Any income received from covid 19 support schemes such as the 1st or 2nd SEISS grants and the small business grants should not be included should not be included when considering whether your trading profits have been significantly reduced'

Can anyone advise if this is the case as I was adding the 3 grants in to see where my overall figures would roughly fall. 

Also last year was a much better profit level than the 3 years the grant was based on and I was hopeful this year would grow again. 

mcplumb

No, they are not taken into account - which is ridiculous. So you could have a 20% reduction in profit, which I would say is significant. You could claim grant 1,2 and 3 and get over 20k which puts you in a far better position than if you had not claimed. Surely this can't be right to gain from a support scheme by so much

Jeremy535897

"You do not have to consider any other coronavirus scheme support payments you have already received when deciding whether you reasonably believe that you will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1 November 2020 to 29 January 2021."

From https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Last year's results are not relevant, because you are comparing hypothetical current year profits (minus grants) with the 3 month reduction, to see if that reduction is significant, not comparing this year with last year.

Grumpy_chap

Earlier COVID grants are ignored for assessing the impact on profits in determining eligibility for SEISS 3.
It's not for me to say whether that is logical.  They are the rules.
When is the deadline for SEISS 3 applications?

No rules yet for SEISS 4 - expect to hear in the budget.

Jeremy535897

Grumpy_chap said:

Earlier COVID grants are ignored for assessing the impact on profits in determining eligibility for SEISS 3.
It's not for me to say whether that is logical.  They are the rules.
When is the deadline for SEISS 3 applications?

No rules yet for SEISS 4 - expect to hear in the budget.

Deadline was 29 January.

Thecreative

I bet there are a lot of people who dont know this,

Grumpy_chap

Thecreative said:

I bet there are a lot of people who dont know this,

The rules are easily found on the .gov website.  First result if searching "SEISS 3" in a leading globally dominating internet search engine.