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Cessation not intended but might happen

Business might have to cease due to COVID despite SEISS support

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Hello,

Does anyone else have a client who had every intention of continuing to trade throughout 2020/21 but COVID is killing their business? What are you advising in terms of SEISS if they have already claimed the grants?

At the time of making both SEISS claims, client was intending to trade throughout 2020/21, has been trading for six years as a self-employed cleaner. However, he still has little income coming in because his customers don't want him back in their homes (shielding or vulnerable) or have got used to doing it themselves and are cutting costs. He is looking for a job to bring some money into his household, and if he is successful he may have to cease to trade.

Your thoughts would be appreciated. Thank you.

Replies (9)

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By jonharris999
21st Sep 2020 15:25

Definitely no clawback. The only thing that mattered was his intention to trade, at the time he applied.

Thanks (3)
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By jonharris999
21st Sep 2020 15:25

.

Thanks (0)
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By jonharris999
21st Sep 2020 15:26

.

Thanks (0)
Lone Wolf
By Lone_Wolf
21st Sep 2020 16:32

I'd second John's comments. If he intended to continue trading when he claimed them, then he met that particular condition.

There will be more than a few that had every intention of continuing, but will be unable to for one reason or another.

Thanks (1)
Stepurhan
By stepurhan
21st Sep 2020 16:44

Probably worth retaining evidence of intention to continue to trade (e-mails with clients for example). I would not put it past HMRC to accuse him of claiming the grant when he knew he would cease trading, so gather the evidence to counter that now.

Thanks (2)
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By Open all hours
21st Sep 2020 18:55

Between you and the client, keep the most detailed contemporaneous records you possibly can including diary notes of thoughts and intentions as well as actual facts and circumstances.
This is sure to be repeated many times over. Good luck all.

Thanks (1)
RLI
By lionofludesch
21st Sep 2020 23:22

I might have one of these. It's certainly not looking good. I wouldn't have any qualms if it happened. I told him to keep a record of his efforts - the only snag is it's not entirely contemporaneous as he fully expected to be trading by now.

Thanks (1)
Lisa Thomas
By Insolvency Practitioner
22nd Sep 2020 09:28

I agree to keep records to show any future Liquidator that the grant was applied for in accordance with the terms.

Thanks (0)
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By legerman
22nd Sep 2020 20:35

I've got one that claimed the first grant as he was self employed during 19/20, but has
but after receiving grant he went paye as he was desperate for money. Seems settled in the job now so I doubt very much he will go back to self employment unless he has to.

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