I have a client who's 19.20 tax return was submitted before 31.1.21 but unfortunately the partnership income got incorrectly reported to hmrc as employment income; the Partnership tax return was also submitted on time and correctly showed the individual as a partner throughout. HMRC then closed the clients self employment record in November 2020 without telling us (despite also having a Partnership tax return for 19.20 with him as a partner).
This has all come to light as the client went to claim 4th SEIS grant last week and couldn't - told he was not showing on their system as self employed and his 19.20 income was as employment. HMRC have updated their systems over the weekend to show the income for 19.20 correctly as Partnership. He still can't claim the grant online and HMRC have said that because his 19.20 record wasn't amended before 2.3.2021 then he is still ineligble to claim...despite fact they have the Partnership tax return on record correcty showing he was self employed throughout with no cessation.
Is it worth appealing against the decision with HMRC? Has anyone had experience of appealing agaisnt SEIS decisions with HMRC?
This client's business continues to be very badly affected by covid so this is much needed funds.