In Joshua Peter Taylor v HMRC [2022] TC8576, the First Tier Tribunal (FTT) confirmed that a taxpayer who incorporated his business just before the COVID-19 lockdown was not entitled to support payments under the Self-Employment Income Support Scheme.  

  • The appellant filed his 2018-19 tax return on the basis that his self-employment ceased on 31 July 2018. The self-employed business was Incorporated and the taxpayer was employed by his company thereafter.
  • In May and August 2020 the appellant successfully applied for Support Payments through the Self-Employment Income Support Scheme (SEISS).
  • HMRC opened a post-payment compliance check concluding that as the self-employment had ceased the appellant was due to repay the money received.
  • The taxpayer Appealed to the FTT.

The FTT found that:

  • A trade must have been carried on at the time of the claim, this condition was not met as the self-employment ceased. SEISS payments were not due.
  • The taxpayer’s argument that the continuation of the taxpayer's trade by his company was sufficient to qualify for SEISS was dismissed.
  • The HMRC officer had raised a valid assessment within the applicable time limits.

The appeal was dismissed.

Useful guides on this topic

COVID-19: Taxation of coronavirus support payments
This guide summarises the tax treatment of grants paid during the Coronavirus pandemic.

COVID-19: Self-Employment Income Support Scheme (SEISS) (now ended)
Self-Employment Income Support Scheme (SEISS): support for the self-employed during the Coronavirus crisis. The fifth SEISS grant covering May to September 2021 was open for claims until 30 September 2021. 

COVID-19: Government support tracker
This tracker covers measures announced by the government to support individuals and businesses through COVID-19.  

How to appeal an HMRC decision
Disagree with an HMRC decision? How to appeal, what type of decision can you appeal and what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External links

Joshua Peter Taylor v HMRC [2022] TC8576

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