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Claiming expenses if SEISS received

Are we at risk of double counting exps ?

Didn't find your answer?

I've looked for guidance from HMRC and can't find any.

If we have clients that have claimed SEISS but were still working albeit in  very reduced manner, what uis everyone doing about claiming expenses such as use of home etc ?

Surely there's double counting for reief as the SEISS was based on the profits (thereby already takiing into account the expenses) - I'm wondering whetehr to just claim the extra 20% (ish) that wasn't able to be claimed - or apportion it on a turnover basis compared to the previous year ?

Just wondered what everyone was doing ? 

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RLI
By lionofludesch
19th Jul 2021 12:10

" I'm wondering whether to just claim the extra 20% (ish) that wasn't able to be claimed...."

20% of what ?

You seem as confused as I am by your question.

If it's a business expense, claim it.

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Replying to lionofludesch:
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By Tax Dragon
19th Jul 2021 12:25

lionofludesch wrote:

If it's a business expense, claim it.

It's not. I think the OP is saying that SEISS was 80% of income therefore there must be an unclaimed 20%. That 20% which was neither received nor spent must be a claimable expense. (Obviously not in the accounts - they wouldn't balance unless you put the grant up to 100% - but by way of some kind of tax adjustment that the legislators forgot to put in.)

I seriously, seriously wonder about the standard of tax and accountancy services that are on offer to Jo/e Public these days. Was it like this when you were younger, Lion? (But I hope I have misunderstood the question.)

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Replying to Tax Dragon:
RLI
By lionofludesch
19th Jul 2021 12:40

Tax Dragon wrote:

It's not. I think the OP is saying that SEISS was 80% of income therefore there must be an unclaimed 20%.

What ??

So you receive 80% and claim 20% as a deduction so you only pay tax of 75% of what you receive ?

I like it - but I don't think it'll work.

No - it wasn't like that 50 years ago. All traders had an accountant. Nobody filled in their own return.

Companies all needed an audit (albeit on a less stringent basis than today) so all companies had an accountant. And there weren't so many companies. Company 1000000 was formed around 1975 (after around 130 years), Company 2000000 around 1985, Company 3000000 around 1992 and in the following 29 years what are we up to now ? Around 12000000 ?

It's nice to have all these rules but who's seeing that they're being applied ?

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Replying to lionofludesch:
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By Tax Dragon
19th Jul 2021 13:02

I may have misunderstood. (It's easy to do in an absence of understanding. Which in turn is easy to understand in the absence of understandability.)

So let's go with Wolfie's response. It's kinder on the skin.

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Replying to Tax Dragon:
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By legerman
21st Jul 2021 12:26

Tax Dragon wrote:

lionofludesch wrote:

If it's a business expense, claim it.

It's not. I think the OP is saying that SEISS was 80% of income therefore there must be an unclaimed 20%. That 20% which was neither received nor spent must be a claimable expense. (Obviously not in the accounts - they wouldn't balance unless you put the grant up to 100% - but by way of some kind of tax adjustment that the legislators forgot to put in.)

The way I read it was - are the use of home deductions and the like still claimable. If the client was still working, albeit in a reduced capacity, I would say yes.

There again, that might not be the question the OP asked, in which case I'm as confused as you are :-)

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Lone Wolf
By Lone_Wolf
19th Jul 2021 12:24

You're over complicating it I think by considering what SEISS was meant to cover. It is just a grant, and should be treated as any other revenue grant (albeit put in a new shiny box).

Think of it as just additional income. If it was a sale, then you'd claim the expenses. It's the same here. The expense can be claimed no problem.

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By SXGuy
19th Jul 2021 15:02

What?!?

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By Truthsayer
19th Jul 2021 16:51

?

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