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Include SEISS in turnover for Accts Cert for Mortg

Include SEISS in turnover for Accts Cert for Mortgage?

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My client's profits in 20/21 were higher  than 19/20 because they received SEISS. But T/o was a lot lower.

I'm being asked to submit an Accs Cert for our favourite Spanish bank. Client thinks I should easily include SEISS in T/O as he doesnt want the bank to know that profits are after this windfall. I think SEISS is not T/o.

Am I the worlds biggest stickler accountant?

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RLI
By lionofludesch
11th Dec 2021 18:16

No. I wouldn't include it in turnover either. Mainly because it's not turnover.

Remind your client that it's your certificate, not his.

I might note it, though. I never used to fill in their forms anyway. I used to send a letter which included the wording I wanted, the information I wanted and the caveats I wanted.

I never had one sent back.

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ALISK
By atleastisoundknowledgable...
11th Dec 2021 19:31

That’s a good modus operandi I might copy

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ALISK
By atleastisoundknowledgable...
11th Dec 2021 19:34

I wouldn’t include it. The client would ask me to do I’d compromise and note in the ‘any other comments’ box, but still not include it in the trading figures

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By Tax Dragon
11th Dec 2021 19:41

What's the logic? Is it a payment to the individual, not the business (kind of thing)?

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RLI
By lionofludesch
11th Dec 2021 20:12

Tax Dragon wrote:

What's the logic? Is it a payment to the individual, not the business (kind of thing)?

Logic?

To provide information to enable the lender to make a decision. The lender makes of it what he wants.

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By Tax Dragon
11th Dec 2021 21:09

You wouldn't include in turnover. Would you include in the accounts at all?

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By Truthsayer
12th Dec 2021 10:30

Don't let your client tell you what to include. The bank is asking for the turnover, and SEISS is not turnover. SEISS should not be included in the profit figure at all, as it is not income of the business. However, it would be perfectly okay to put it on the form completely separately.

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By jonharris999
12th Dec 2021 16:01

+1. Side note, not turnover. Anyway, the banks know all about SEISS and have already decided whatever policy they have decided about whether they are including it or not.

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By Duggimon
13th Dec 2021 09:34

My partners are including it as income in the accounts, though not turnover, then adding it back on the business tax comp, then bringing it back in on the returns. I'm not including it in the accounts at all, only the tax return because I don't think it has anything to do with the business.

I think either approach is fine and justifiable (though I am of course more correct than them :D ) but the one thing we can all agree on is that it isn't turnover. You wouldn't include it as turnover for the same reason you wouldn't include it as an add back of telephone expenses.

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