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My client may claim SEISS

He doesn't qualify. Do I file a SAR?

Didn't find your answer?

My client who was self employed in 2018-2019 and incorporated in June 2019 and stopped being self employed since then, keeps insisting he is eligible for the grant.

I have said several times that he isnt, I have sent the guidance etc. But I suspect that he is going to claim it anyway. If he does and I see it in the bank account do I file an SAR? Or will the HMRC review catch him out anyway?

Thanks

Replies (12)

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RLI
By lionofludesch
01st Jun 2020 20:14

I vote yes.

I would like to think he'll be caught once his next SA return is submitted.

However, I wouldn't bet on it.

Thanks (8)
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By Truthsayer
02nd Jun 2020 09:35

'If he does and I see it in the bank account do I file an SAR?' Yes, absolutely.

'Or will the HMRC review catch him out anyway?' Irrelevant to your legal obligations.

Thanks (1)
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By tracey2412
03rd Jun 2020 10:17

If he isn't eligible for the SEISS it won't let him claim - he can try as many times as he wants! It isn't like the BBL or the CJRS where you put your own figures in. I tested it - both with a client who WAS eligible & it agreed & told him the £ he was getting. And with a client (my son!) who I knew wasn't eligible but I wanted to see the process. It just said 'you are not eligible' & wouldn't let me go any further.
BUT - yes, IMO, if he manages to claim & be paid out, it will be obvious & is fraud. Cover yourself.

Thanks (2)
Replying to tracey2412:
By birdman
03rd Jun 2020 10:23

He was eligible at HMRC's cut-off date, but he would need to submit a false answer on his application to get any money (where they ask if he is still self-employed), that's the issue here.

Thanks (1)
Replying to tracey2412:
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By petestar1969
03rd Jun 2020 10:26

Being ineligible doesn't prevent clients from claiming. They will need to lie of course about continuing to trade in 2020/21 which will come to light, hopefully, when their 2020/21 tax return is filed with no S/E on it.

To answer the OP's question: Yes!

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By towat
03rd Jun 2020 10:44

Either way make sure you advise him in writing that you think he can't claim, then he can't blame you when he gets caught.

Thanks (4)
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By Tim Robinson
03rd Jun 2020 11:02

How will you know he has received it, would you just accept his word that he has received it or would you expect to see it on his personal bank statement?

If he has incorporated is it your normal practice to request personal bank statements?

I agree with your question and the answers so far, but am a bit concerned about the practicalities.

Tim

Thanks (1)
Morph
By kevinringer
03rd Jun 2020 13:09

If he does and I see it in the bank account do I file an SAR? Yes

Or will the HMRC review catch him out anyway? Irrelevant.

Thanks (0)
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By pauljohnston
03rd Jun 2020 16:02

A yes from me too. Its fraud

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Julia Penny
By Julia Penny
03rd Jun 2020 16:31

Yes - you would make a SAR. If you are even suspicious that a client has claimed amounts knowing or suspecting that they are not eligible then a suspicious activity report is needed. It is never enough to leave it to HMRC to find. If however, a client makes an honest mistake (for instance because they did something before they asked your advice) this is not reportable as a suspicious activity, although once they know it is a mistake they would have to put it right. If they didn't put it right they then know of the illegality so this requires a SAR.

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By Dp2020
04th Jun 2020 09:24

I vote yes, he will need to declare any SEISS grant on his next tax return, with no other self employment income so it should get picked up...

I have many clients getting far more or less than they deserve due to the very poor rules

Thanks (0)
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By Dp2020
04th Jun 2020 09:24

I vote yes, he will need to declare any SEISS grant on his next tax return, with no other self employment income so it should get picked up...

I have many clients getting far more or less than they deserve due to the very poor rules

Thanks (0)
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