Clients are, understandably, contacting me with regard to the Self Employed Income Support Scheme. A couple of weeks ago I provided each of my clients with my calculation of the monthly amount they could 'expect' to receive, subject to them satisfying all the eligibility criteria. I also clearly pointed out that the information was being provided 'in good faith', in order to assist, but must not be relied on. I specifically pointed out that, in order to qualify, they needed to have 'lost trading profits due to coronavirus' (as per the wording on the GOV.UK website). I also advised clients that they could continue to run their businesses. I'm just talking about the self-employed or partners in a trading partnership here.
I keep being asked, however, what information will have to be provided in order to quantify 'lost trading profits', or will it be simply a case of a YES/NO tick box?
According to information on the GOV.UK website, the grant will not need to be repaid. I understand that HMRC will use a risk based approach to compliance, but it seems strange that some self-employed taxpayers could profit from this situation. Even if they have, indeed, been adversely affected (financially) by the pandemic, the SEISS, together with their (albeit reduced) 'earnings' from the business, could result in a higher profit figure for the duration of the grant. It seems an anomaly, but maybe the scheme was never designed to be perfect.
Any thoughts please?
Enjoy the rest of your weekend.