Doesn’t apply to me and most of you probably have had the same info but just got this through automatically from my accountant. Do yourself a favour and keep records - you may need them if and when this is all over in case this or any future government goes on an aggressive tax reclaim.
HMRC CHECKS OF SELF EMPLOYED GRANT CLAIMS
This update is relevant to you if you have claimed a grant from HMRC using the self employment income scheme (SEISS)
We understand that HMRC will be checking these claims at some point in the future. Their guidance advises that you must keep a copy of “all records in line with normal self-employment record keeping requirements including how much you have claimed from SEISS and your claim reference number.” The records must be kept for at least five years after the 31 January tax return deadline or, if later, four years after you submit your tax return.
You must also keep evidence of how your business was adversely affected by coronavirus. HMRC’s latest guidance says you must have records which “demonstrate the nature of the adverse effects to your business operations”.
They state that your evidence could include business accounts showing a reduction in turnover, confirmation of any coronavirus-related business loans you have received, dates your business had to close because of lockdown restrictions, and dates you or your staff couldn’t work because of coronavirus symptoms, shielding or caring responsibilities because of school closures.
HMRC has published examples of what it thinks counts as “adversely affected”, such as having to “scale down or temporarily stop trading because your supply chain has been interrupted, you have fewer or no customers or clients, or your staff are unable to come into work” (the following link will take you to HMRC’s web page regarding this matter).
https://www.gov.uk/guidance/claim-a...ent-income-support-scheme#after-youve-claimed
To ensure that any potential problems with HMRC are avoided, we advise that you make a more detailed record of ANY negative impacts you may have suffered because of the virus situation. That might include not just what has actually happened but also what you expect would have happened but for the crisis. Record jobs you expected to be working on, or customers you expected to have. Record cancellations, or cases where work has been postponed. If you have regular clients, regular contracts, record what you would usually be doing, and what you’d usually be charging but haven’t done so because of the pandemic. Dates, names, addresses and usual charge-out rates etc, will all give credibility to support your case. We would urge you to prepare this information as soon as you can to ensure that your facts are correct and while everything is fresh in your mind.
HMRC CHECKS OF SELF EMPLOYED GRANT CLAIMS
This update is relevant to you if you have claimed a grant from HMRC using the self employment income scheme (SEISS)
We understand that HMRC will be checking these claims at some point in the future. Their guidance advises that you must keep a copy of “all records in line with normal self-employment record keeping requirements including how much you have claimed from SEISS and your claim reference number.” The records must be kept for at least five years after the 31 January tax return deadline or, if later, four years after you submit your tax return.
You must also keep evidence of how your business was adversely affected by coronavirus. HMRC’s latest guidance says you must have records which “demonstrate the nature of the adverse effects to your business operations”.
They state that your evidence could include business accounts showing a reduction in turnover, confirmation of any coronavirus-related business loans you have received, dates your business had to close because of lockdown restrictions, and dates you or your staff couldn’t work because of coronavirus symptoms, shielding or caring responsibilities because of school closures.
HMRC has published examples of what it thinks counts as “adversely affected”, such as having to “scale down or temporarily stop trading because your supply chain has been interrupted, you have fewer or no customers or clients, or your staff are unable to come into work” (the following link will take you to HMRC’s web page regarding this matter).
https://www.gov.uk/guidance/claim-a...ent-income-support-scheme#after-youve-claimed
To ensure that any potential problems with HMRC are avoided, we advise that you make a more detailed record of ANY negative impacts you may have suffered because of the virus situation. That might include not just what has actually happened but also what you expect would have happened but for the crisis. Record jobs you expected to be working on, or customers you expected to have. Record cancellations, or cases where work has been postponed. If you have regular clients, regular contracts, record what you would usually be doing, and what you’d usually be charging but haven’t done so because of the pandemic. Dates, names, addresses and usual charge-out rates etc, will all give credibility to support your case. We would urge you to prepare this information as soon as you can to ensure that your facts are correct and while everything is fresh in your mind.
