HMRC are now writing to more and more sole-traders who have incorrectly claimed any one of the FIVE SEISS (self employment income support scheme) grants during 2020 and 2021 demanding repayment.
You should be aware of the conditions for repayment and make the necessary arrangements to repay sooner rather than wait for HMRC to add interest and penalties if they later discover that you should not have claimed…
It’s becoming more apparent that some folk have claimed SEISS grants when they shouldn’t have, more so now that tax returns are being submitted showing bumper profits especially in the building & construction trade.
The conditions for repayment of the SEISS grants are as follows:
- for the first or second grant, your business was not adversely affected
- for the third, fourth or fifth grant, your business had not been impacted by reduced activity, capacity or demand or inability to trade in the relevant periods
- you did not intend to continue to trade
- you’ve incorporated your business (switched from being a sole-trader to a limited company)
Since claims were made directly by the self employed individual who had warranted their business status at the time of each claim, accountants are usually unable to advise on whether a repayment is required; however, if your reported profits are much higher than they were Pre-Covid, then you probably should ask yourself the question and go through this HMRC checker which will give you a definitive answer.
Accountant at LeeP Accountants