SEISS 3

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A partnership (husband and wife) has a work stream mainly managed by the wife who received SEISS 1 & 2. This stream is depleated as a result of Covid 19. The husband however will have a higher share of profit as the work he handles through the partnership has actually increased and the overall accounts profit may be as high as the PY as a result. He has not qualified for SEISS 1 & 2. The wife's share of profits (annually and over any specific period since April 2020) will be adversely affected and certainly down between 30/11/2020 and 31/01/2021. Any thoughts on her eligibilty please for SEISS 3.

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By Paul Crowley
28th Nov 2020 20:21

Is this really a partnership or 2 sole traders operating together
Are expenses allocated to the income.
How are fixed costs allocated

How will this not look like manipulation
Same profit as last year but move the profit share to justify free money.
Does it smell OK to you?

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Replying to Paul Crowley:
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By possep
29th Nov 2020 17:31

It's not a case of moving money. The nature of the more specialist work has genuinely involved the husband who is the partner that is able to do the work. The wife is not able to. It's more a case of the income being through a partnership rather than sole traders. Had it been sole traders the wife would qualify. This is the problem and HMRC don't cover this in their examples.

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Replying to possep:
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By Paul Crowley
29th Nov 2020 18:23

If there has previously been a fixed profit share, is the fixed profit share going to be changed just this once?

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Replying to Paul Crowley:
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By possep
30th Nov 2020 17:57

The profit split has depended on who did the work. It's been different year on year.

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