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SSEIS 5 Grants - does the client qualify?

Significantly reduced trading income, but has new source of LLP profits

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I am acting for a self-employed construction professional whose work was affected by COVID, i.e. he had to reduce signifficantly his workload due to health risks. So far so good, self-employed TO and profits are down more than 50%.

Also during the tax year 20-21 he bought into an LLP as a sleeping partner and received a profit share. This profit share brings his income to roughly the same level as he had from self-employment during the tax year 19-20.

I understand that receipt of LLP profit share will preclude him from claiming SSEIS 5 as his overall TO from self-employment + LLP profit share will exceed his self-employed TO for the tax year 19-20. 

Looking for confirmation of my understanding.

 

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By David Ex
13th Jul 2021 15:32
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Replying to David Ex:
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By free-rider
14th Jul 2021 00:30

Thank you for the pointer. Seems that it is a no-go for a client.

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By AdamMurphy
13th Jul 2021 23:36

It's a dangerous game to start advising clients on if they should claim or not when HMRC say we aren't to be involved in claims. Leaves yourself open for indemnity claims.

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Replying to AdamMurphy:
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By Hugo Fair
14th Jul 2021 00:23

I'm hardly known as HMRC's greatest fan, but can you please cite any evidence of them saying "we aren't to be involved in claims".

The only related statements I've seen (and in plenty of different sources) are:
1. Please assist your clients with regard to completing their SEISS claims; but
2. Do not submit claims on behalf of your clients (they must do this themselves).

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