In our weekly Q&A, Suzanne Rowland, tax adviser at Croner Taxwise, considers how use of Self-Employment Income Support Scheme (SEISS) grants could impact on a sole trader’s decision to incorporate their business and any risks around earlier SEISS claims
My client’s sole trading business was affected by coronavirus and so they claimed SEISS grants 1 to 3. After reviewing the 31 March 2021 accounts and potential bounce back in demand, my client is considering incorporating for tax efficiency. My client is a UK resident, has been carrying on his sole trade for over four years and his only income for those years has been his trading income. However, I am concerned that the incorporation and so cessation of his trade may affect the SEISS claims that my client has already made?
When the SEISS Treasury Direction was issued on 30 April 2020 it listed, under section 4, what conditions had to be met to be regarded as a ‘qualifying person’. Although from your comments your client seems to be meeting most of them, I just want to draw your attention to the following parts of the ‘qualifying person’ section.
Secti
