SEISS alert: New criteria ‘significantly different’ to expected changes & earlier grants
SEISS rules were altered shortly before applications for third grants opened up and new guidance was issued by the government on November 30. In analysing the new rules, Old Mill the expert accountant and financial advisors, warned the new criteria is tighter and claimants may need to even forecast their oncoming financial results.
Chris explained: “We understand that the significant reduction in trading profits test is to be applied to the accounting period as a whole, which means that claimants will potentially need to forecast their financial results in order to establish their eligibility for this third grant.”
Additionally, HMRC details they expect claimants to make an “honest assessment” about whether they reasonably believe their business will have a significant reduction in profits as a result of the pandemic.
This Chris highlighted could lead to difficulties: “Whilst it can be difficult for hard-pressed owner-managers to keep abreast of the constant changes coming out of the Treasury, this tightening of the criteria is really important.
“Essentially, HMRC have introduced a test where a taxpayer needs to be comfortable that their profits in the year they’re claiming for will be significantly reduced from prior years.
