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SEISS Only - No other income. SA required?

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Client affected by covid, working in the tourism industry. 

Recieved less than £1k SEISS in the year end only, no other income and intended to work. Living on inheritance/savings.

I am assuming SA for 05.04.21 still required and just record the SEISS? Of course will check the bank statements first 

Replies (11)

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RLI
By lionofludesch
18th Nov 2021 12:17

Has a return been issued ?

If yes, fill it in.

If no, mmmm, I might tend towards filling it in anyway bearing in mind that there seems to be one entry on it and it's a bit of a borderline case but I suspect it's not actually required.

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Replying to lionofludesch:
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By Paul Crowley
18th Nov 2021 14:17

Difficult to believe that money received from HMRC and HMRC did not issue a tax return

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Replying to Paul Crowley:
RLI
By lionofludesch
18th Nov 2021 15:55

Quite. And one issued, you'd've thought the answer became academic.

Yet the question has been posed nevertheless.

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By Not Anonymous
18th Nov 2021 12:58

But if the client had received a SEISS grant in 2020/21 and doesn't complete a return this would surely be a very large red flag to HMRC that might prompt unwanted/unnecessary attention?

Personally hard to see a case for not completing a 2020/21 return where SEISS 1, 2 or 3 has been claimed.

Thanks (2)
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By Wanderer
18th Nov 2021 13:08

I'd file.

Also if relevant the client can pay Class 2 via the SA return to keep their contribution record complete.

Also see this:-
https://www.accountingweb.co.uk/any-answers/hmrc-chasing-201920-tax-retu...
Wouldn't be surprised if something similar follows for the 21 returns.

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By jwill76
18th Nov 2021 13:18

Yes indeed.
My thought was it would cause a red flag and they may request repayment of the SEISS too

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Stepurhan
By stepurhan
18th Nov 2021 13:44

I would file the retun because you also want to include the declaration that that there are no Covid grants that need repaying.

I would also be ready for an enquiry into your SEISS. HMRC seem likely to query whether a business was really continuing if the only income was SEISS. I'm not saying you didn't intend to continue trading, and you may well have been able to do so later as proof of that. Just be prepared with your defence of that position.

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Replying to stepurhan:
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By jwill76
18th Nov 2021 15:37

Was not for me, was for a client. But appreciate the response

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By jwill76
18th Nov 2021 18:07

Never mentioned if the return was requested or not, settle down boys.
Gateway shows no request however.....

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Replying to jwill76:
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By Paul Crowley
18th Nov 2021 18:34

That suggests client has advised cessation of trade
The SEISS is trivial, but best to find out why no tax return issued.
HMRC will accept all sort of nonsense from a client
One of mine got the return cancelled despite trading for 6 months of the year before moving trade into a company
If issued and cancelled, client and agent get paper copies on the withdrawal, usually.

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By Catherine Newman
19th Nov 2021 15:12

Claim the trading allowance. If HMRC don't see the grant being reported they may ask the question. If the client has been quality to date, offer a discount.

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