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SEISS: warning for newly incorporated companies

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LITRG has also noted that business owners who were self-employed but have recently incorporated their business into a limited company are unlikely to be eligible for the SEISS even if HMRC’s eligibility checker confirms that they may be eligible. The eligibility checker uses information from tax returns for 2018/19 or earlier but does not check the other qualifying conditions for the scheme, some of which may have changed in the intervening period. Claimants who apply via the eligibility checker tool are therefore asked to declare that they:

  • traded in the tax year 2019/20;
  • intend to continue to trade in the tax year 2020/21; and
  • are carrying on a trade which has been affected adversely by coronavirus.

Businesses which have recently incorporated, and whose owners are therefore no longer self-employed, are unlikely to meet these additional conditions, even if their owners think of themselves as continuing to trade.

Issue: 1488
Categories: News