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<p>It has not been possible to include those who began trading after the 2018-19 tax
year in the SEISS. This was a very difficult decision and it was taken for practical
reasons. As the Chancellor highlighted when announcing the SEISS, in order to ensure
that the scheme is deliverable, only those who are already in self-employment and
had a tax return for 2018-19 are able to apply. Unlike for employees, self-employed
income is not reported monthly, but at the end of each tax year on the individual’s
Income Tax Self Assessment return. This means that the most reliable and up-to-date
record of self-employed income is from 2018-19 tax returns.</p><p>The Government recognises
that those who started trading more recently will not have submitted a tax return
for the 2018-19 tax year, and it has considered alternative approaches. This included
using tax returns for 2019-20, now that these can be submitted to HMRC.</p><p>However,
there would be significant risks for the public purse if the Government relied on
2019-20 returns for the SEISS, as this would create an opportunity for fraudulent
activity.</p>
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