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Another Taxcalc SEISS issue, or is it me this time

Trade losses not reducing SEISS taxable profit

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I posted last week regarding Taxcalc calculating incorrect losses using the Self Employment Short page, when entering SEISS income and also having a trade loss.

I was advised by members and Taxcalc to use the Self Employment Full pages instead.

However, im unsure whether ive discovered another issue or whether the issue is my understanding.

I have a trade loss and SEISS but taxcalc wont allow me to offset those losses against SEISS income, instead it advises that i just reduce the income subject to Class 4 Nic (use box 102 of SA103F page 5)

Does this seem correct? the difference in tax is either a refund or a slight payment.

I should also mention that when i use the Self Employed short page and ignoring the false loss c/fwd it creates, it does indeed reduce the SEISS by the correct amount of trade loss.

 

Replies (10)

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By Cazzie B
09th Apr 2021 14:01

Found same problem and spoke to Taxcalc.
Until the update later on in month they advised to use the short SE and ignore the losses
as that is correct calculation
Then if you submit before the update, submit a revised Return after

Thanks (1)
Replying to Cazzie B:
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By SXGuy
09th Apr 2021 14:07

Thank you!

Its a shame they have already advised some to use the full pages. But I'll wait for an update.

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Replying to Cazzie B:
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By DaveyJonesLocker
10th Apr 2021 20:19

It's ok them saying that but I wonder if amended Tax Returns flag up with HMRC as maybe warranting enquiry?

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By adam.arca
10th Apr 2021 08:09

If it’s time-sensitive, why not use the short pages and submit now and just make a file note to strip out the false loss next year?

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Replying to adam.arca:
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By SXGuy
10th Apr 2021 08:27

Yes that's one option.

Thanks.

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By DaveyJonesLocker
11th Apr 2021 15:03

I would have hoped this and the other other had got picked up in beta testing. Trade losses won’t exactly be uncommon this year.

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RedFive
By RedFive
14th Apr 2021 10:01

1. TaxCalc has an issue in 'simplestep' where it asks 'have you claimed cv support payments' even though you have correctly entered the amount into SEF4 box 70.1. You would then presume that was to populate box 20.1 on TR8 but it does not and skips over that part of the return.

2. There is also a problem with SEISS being included as business profit in the accounts but as it is reported separately on the tax return (SEF 4 box 70.1) taxcalc does not then populate the capital account correctly. The capital account in TC leaves out the SEISS income. My workaround is to add it into box 97 capital introduced. (long form)

3. SEISS not reduced by trading loss remaining taxable in full. (long form)

I've reported all three to TaxCalc.

Thanks (1)
Replying to RedFive:
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By DaveyJonesLocker
29th Apr 2021 00:12

These things should have been beta tested before the initial release

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Replying to DaveyJonesLocker:
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By Paul Crowley
29th Apr 2021 01:17

Maybe I am wrong but I thought all tax calculations needed to be tested that in agreement with HMRC calculations before release.
Could it be that HMRC did not get it right as well?

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Replying to Paul Crowley:
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By DaveyJonesLocker
29th Apr 2021 08:15

Other software gets it right

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