SEISS harsh

tlbarrett

I have been trading as a one man band for over 30 years both as a single person limited company and self employed. I have always paid my due taxes, never tried to claim anything I shouldn't and only just earned enough to keep our bills paid and food on the table but we've been happy. When covid struck I claimed the grants as it significantly affected my earnings. Trading is getting much better now so all good I thought.

I was struck by many people telling me how they knew of individuals who has setup companies, got the 50k bounce back loan and put an extension on their house !. I wasn't bothered as I was ok.

Then two weeks ago I got a letter from HMRC to say that according to their records I had traded in 2018/19 , also in 2020/21 but not in 2019/20.  I did have a poor year and what I had inadvertently done was the few invoices I had issued I had put the wrong bank details on and it went into my ltd company account. No worries I thought as I did the work as self employed person..but no.. HMRC are being really nasty and threatening to ask for all the 1st and 2nd grant to be paid back. That would cripple my family

As I said I have traded for over 30 years ( turnover never more that £25k ) , always been honest and yet they have decided to come for me with all guns blazing

Am I right to feel wronged , stupid or both ?

Grumpy_chap

When did you start trading as a sole trader?

When did you start trading as a Ltd Co?

tlbarrett

Both way back in 1993. The ltd company was purely for some agency work which required a ltd company

Jeremy535897

If you declared no self employment income in 2019/20 on your self assessment return, this is what has triggered the claim. What did your SA return for 2019/20 say?

tlbarrett

12400.. the accountant did it

sheramber

 was the few invoices I had issued I had put the wrong bank details on and it went into my ltd company account. 

Did your accountant include these invoices that went through the ltd account in the 2019/20  self assessment figures? Is that what HMRC are seeing?

tlbarrett

I think so yes. He said he would move some into the self assessment as they were incorrect

Grumpy_chap

So, you declared 2019/20 as NIL sole-trader income?
Did you also complete the "ceased trading" entries in either the 2018/19 or 2019/19 tax returns?

Jeremy535897

If your 2019/20 return was filed by 2 March 2021 and showed self employment profit of £12,400, why are HMRC saying you didn't trade in 2019/20? Also, how does this figure tie in with "the few invoices I had issued"?

tlbarrett

Sorry for the late reply. It turns out my accountant had told them I had ceased trading even though I hadn't. They then went on to complete a SA return showing £12400 but the money had gone into another account even though it was self employment income.

When I tackled them today they literally threw their hands up and said any responsibility for applying for the grant was mine not theirs. They just sort the accounts out. I said to them it was because they had said I had ceased trading that was the cause of the problem but they said they had done it to maximise my tax saving and again the SEISS was nothing to do with them

ie.. they have thrown me under the bus !

justwhat

Maybe its just me ....but covid /covid grants have shown some of these accountants to be less than competent/efficient.

When i had an accountant he offered advice and guidance. Some seem to just do admin lol