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Where Taxpayers and Advisers Meet

SEISS Grants & Expenses

Jholm
Posts:155
Joined:Mon Mar 11, 2019 4:22 pm
SEISS Grants & Expenses

Postby Jholm » Fri May 07, 2021 4:51 pm

Hi all,

Everything I've found suggests that you can claim expenses against your SEISS grant 'income', even when only grant income exists.

This seems surprisingly nice of HMRC in my opinion, since the grants are calculated on previous years' profits and not pre-expenses. I would have thought they would have put it a provision to cap the expenses claimed at the amount of non-grant trading turnover.

Only really a comment but if anybody can add anything more specific than my mind rambles, I'd like to hear your thoughts.

Thanks

maths
Posts:8234
Joined:Wed Aug 06, 2008 3:25 pm

Re: SEISS Grants & Expenses

Postby maths » Sun May 09, 2021 6:33 pm

Basically a self employed person must be carrying on a trade (re the 4th grant trading in tax years 19/20 and 20/21).

If however, no actual trading income was generated other than receipt of the 4th Grant expenses can be deducted. Only if trade has ceased is there a problem.


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