Share this content

Incorporation after SEISS

1st and 2nd SEISS to be paid back if incorporated in 21/22?

Didn't find your answer?

Hi all, I have asked this question on other forums and I am getting a mixed response.

Client was forced to shut up shop when covid first hit. They were a sole trader. They claimed the first and second SEISS grant and met all the correct criteria. No further claims were made. A year on and a thorough review of accounts, tax positions, risk etc they have decided to incorporate.

I am getting mixed responses and some have said definitively that this means that as they have ceased trading that the grants need to be declared and repaid however I tend disagree (happy to be proved wrong). They intended to trade and continued to do so throughout 20/21 and is making a business decision that was not present at the time of claim a year prior to progress their business and incorporate. 
 

I can not find any specific guidance apart from the standard wording 'continue to trade' or reference to time frames in which the cessation of trade means a repayment. Can anyone please confirm either way or point me to the correct reference?

 

thankyou in advance 

Replies (15)

Please login or register to join the discussion.

Replying to David Ex:
avatar
By Tambo
13th Jul 2021 19:40

Thank you for your reply. This post was from may 2020 and again just refers to confine to trade in 20/21 which my client did but nothing about after that period?

Thanks (0)
avatar
By David Ex
13th Jul 2021 19:47

Presumably, if you incorporate after 30 September, you’re all good?

What’s the rush?

Thanks (0)
Replying to David Ex:
avatar
By Tambo
13th Jul 2021 20:04

No rush I suppose, I am just curious and obviously want to ensure I advise correctly if there are dates out there to adhere to but I just can’t find any official guidance. And especially as I have had so many split responses. What makes you say September? Assume based on 5th grant eligibility?

Thanks (0)
Replying to Tambo:
avatar
By David Ex
13th Jul 2021 21:33

Tambo wrote:

What makes you say September? Assume based on 5th grant eligibility?

ICAEW guidance on SEISS 5 days:

“… reasonably believes there will be a significant reduction in their trading profits due to the impact of COVID-19 in the period from 1 May 2021 and 30 September 2021”

So I *assumed* what happened after was not relevant.

Thanks (0)
Replying to David Ex:
RLI
By lionofludesch
13th Jul 2021 21:48

David Ex wrote:

Tambo wrote:

What makes you say September? Assume based on 5th grant eligibility?

ICAEW guidance on SEISS 5 days:

“… reasonably believes there will be a significant reduction in their trading profits due to the impact of COVID-19 in the period from 1 May 2021 and 30 September 2021”

So I *assumed* what happened after was not relevant.

What have the SEISS 5 rules got to do with repaying SEISS 1 and 2?

Thanks (2)
Replying to lionofludesch:
avatar
By Tambo
13th Jul 2021 22:24

Thanks both for your reply. Yes agree with the dates of like you said they claimed later grants but the claim was for grant one and two so to me this date would not be relevant but please correct me if I am wrong?

Thanks (0)
RLI
By lionofludesch
13th Jul 2021 20:10

Client intended to continue trafing when he claimed SEISS 1 and 2. He traded throughout 2020/21, which is more than required.

What's the problem? I can't see one.

Thanks (2)
Replying to lionofludesch:
avatar
By Tambo
13th Jul 2021 21:16

I can’t either but as others have said the opposite it made me think and lack of actual guidance on gov.uk concerned me

Thanks (0)
Replying to Tambo:
avatar
By jonharris999
13th Jul 2021 21:35

There is no problem here whatsoever, other than our old friend - accountants and others for some reason quite desperate to invent rules to say that people should repay when they should not.

Thanks (1)
Replying to jonharris999:
avatar
By Tambo
13th Jul 2021 22:22

Thanks for your response!

Thanks (0)
avatar
By Paul Crowley
13th Jul 2021 20:57

When did they decide to incorporate
When was last trading income

Or is it 'I wonder what if'
Accepted English may not be your first language but accountants tend to be precise and you are not
A year on from what date?
Any trading or just claimed SEISS?

Thanks (0)
Replying to Paul Crowley:
avatar
By Tambo
13th Jul 2021 21:19

I am English? Haha

Continuing to trade to date, they haven’t stopped apart from obviously covid restrictions throughout various lockdowns. First SEISS was made may 20 and second was around august. They are looking to incorporate in the next month or so

Thanks (0)
Replying to Tambo:
avatar
By Paul Crowley
13th Jul 2021 22:21

I continued to trade
Lockdown did not stop trading for me and for a lot of traders
If you put full and correct details into opening post you will get better responses

Responders prefer full details in opening post

Next month or so is not a year (12 months) on
I am British.

Thanks (0)
avatar
By Paul Crowley
13th Jul 2021 21:10

What did your preferred Fora suggest

Thanks (0)
Share this content