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SEISS and non-5 April year-ends

Potential large tax bills for 2020-21 - have I got this right and is there a solution?

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Had a few health issues last year so I may be the last to realise this, but with the SEISS grants being taxable in 2020-21 isn't there a real problem for people with, say, 30 April 2020 year-ends which will show more or less a full, normal year's profits? Someone with annual profits close to £50k will be hit by HR tax, also possibly loss of Child Allowance. Apart from changing year-ends and claiming overlap (which might be peanuts, given that these are often long-established businesses), any other ideas?

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By K81
18th Mar 2021 11:08

from what I have read you are correct - all SEISS grants paid in the tax year go on the 2020/21 tax return regardless of your accounting period.
I can't see any way round the scenario you have described.

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By Open all hours
18th Mar 2021 11:11

Yes, there are at least two potential problems as you describe when SEISS grants (for individuals and some partners) follow the tax year not the accounting year.

One is the tax liability on the 2021 SA return and the other is that HMRC will not be able to who actually needed the SEISS grants and fraud will be harder to detect.

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