Seiss Grants included as profit?

Dele16

Does anyone know if the grants claimed will be included as trading profit? If the grants are included this will mean a lot of self employed will lose out as the grants will increase profit meaning 5th grant can’t be claimed by many as won’t show 30% reduction if grants are included in trading profit total. Anyone shed light on this? Thanks

Jeremy535897

The test is turnover, not profit, and grants are not turnover.

LHZ

Is it turnover for 20/21 compared to previous years? I appreciate this may not yet be known. 

Jeremy535897

See https://forums.moneysavingexpert.com/discussion/6247218/seiss-5th-grant-query-on-turnover#latest

Dele16

Thanks for the replies, so just to clarify am I correct in thinking Seiss grants aren’t to be included with trading profits and will be entered on tax return separately somehow? 

Jeremy535897

Dele16 said:

Thanks for the replies, so just to clarify am I correct in thinking Seiss grants aren’t to be included with trading profits and will be entered on tax return separately somehow? 

It is expected that form SA103 will have a specific box for SEISS receipts (so HMRC can compare them with what they have paid out).

Eldwick_Girl

I understand that all the SEISS grants are all going in the 20/21 tax returns.  Is this unfair when sole traders using the accruals basis will be entering 19/20 profits in 20/21 returns; depending on when their trading period ends they may have a significant period which was unaffected by covid and then the grant also in the same period, leading to a distorted trading figure?

Jeremy535897

Eldwick_Girl said:

I understand that all the SEISS grants are all going in the 20/21 tax returns.  Is this unfair when sole traders using the accruals basis will be entering 19/20 profits in 20/21 returns; depending on when their trading period ends they may have a significant period which was unaffected by covid and then the grant also in the same period, leading to a distorted trading figure?

In establishing whether your trading profits are significantly reduced for the purposes of assessing eligibility for a SEISS grant, no account is taken of such grants received or to be received in computing those profits.

The grants are taxable in 2020/21 according to schedule 16 FA 2020, but this is to be changed to them being taxable at the point of receipt.