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SEISS Rs 1-3; Challenge by HMRC after 20/21 filed?

Has anyone yet come across a challenge from HMRC about SEISS?

Didn't find your answer?

I would be very interested to know if anyone has a client who has so far been challenged, after filing 20/21 on the basis that SEISS Rs 1-3 were correctly claimed, by an HMRC opinion that they were not correctly claimed.

(We have not - I'm asking so that we can share any available info about this.)

Thanks all.

 

Replies (11)

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By Duggimon
01st Sep 2021 09:15

I would be surprised if they challenge anyone on the first three claims unless they have evidence the person is no longer trading at all.

Four and five are far more likely to be challenged though, given the more restrictive criteria.

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By knittykt
01st Sep 2021 09:17

We had a client who's 20/21 tax return showed no earnings as (per the notes on the return) he'd been ill all year and unable to work but did intend to continue. The client received a calculation from HMRC saying the grants he'd claimed had been done so incorrectly and asking for them to be repaid. Spoke to HMRC who said that because the return had shown no earnings, they presumed he was no longer in self employment and hence not entitled to the grants. Explained the situation to them, they asked for the return to be amended to include a note to say he'd been ill and unable to work but intended to continue. I told them that note was already on the return, in fact I read it out to them from the return but they still wanted the amended return. I jumped through the hoop and now wait to see what happens next!

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Replying to knittykt:
the sea otter
By memyself-eye
01st Sep 2021 09:26

I wonder if you had submitted a notional £10 income if the result would have been different!

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Replying to knittykt:
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By jonharris999
01st Sep 2021 09:30

As you describe it, I like you would expect this to be ruled eligible in accordance with the Directions - no HMRC discretion needed.

On the subject of poor health and HMRC discretion, however, we've been asked about a case where the taxpayer wants to use years earlier than 2018/19 as reference years for turnover calc in Round 5, because they suffered poor health in both 2018/19 and 2019/20. There is evidently no room for this in the Directions, but it will be interesting to see if HMRC use discretion and allow it.

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By bernard michael
01st Sep 2021 09:53

jonharris999 wrote:

As you describe it, I like you would expect this to be ruled eligible in accordance with the Directions - no HMRC discretion needed.

On the subject of poor health and HMRC discretion, however, we've been asked about a case where the taxpayer wants to use years earlier than 2018/19 as reference years for turnover calc in Round 5, because they suffered poor health in both 2018/19 and 2019/20. There is evidently no room for this in the Directions, but it will be interesting to see if HMRC use discretion and allow it.


I think SEISS 5 refers to turnover for the last year not effected by COVID
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By jonharris999
01st Sep 2021 10:08

Unfortunately it doesn't. Directions, 6.2 b. Provision to switch in 2018/19 only - not anything else.

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By Brads.Kings
01st Sep 2021 11:08

Ill with Covid-19 or something else?

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By knittykt
01st Sep 2021 11:12

Something else, an issue which eventually lead to a heart operation and a lot of recovery!

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By Geoff56
01st Sep 2021 12:06

Was he eligible, when the illness had nothing to do with covid?

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By Brads.Kings
01st Sep 2021 12:09

Aren't the Self-Employed Income Support Scheme grants limited to Covid-19 related issues? Being incapacitated by something else is unfortunate , but doesn't qualify for these grants as I understood it.

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By knittykt
01st Sep 2021 12:16

He only claimed the first grant. At that time, he couldn't work because of Covid, after that, he couldn't work because of the illness so didn't claim any further grants.

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