Many self-employed persons were notified that their application for the Self-Employed Person Income Relief Scheme (SIRS) was unsuccessful.
The Main Reasons for rejected Applications
NTUC has commented on the SIRS scheme to address and listed the 6 main reasons why the application was unsuccessful.
- Applicant did not meet two or more criteria
- Applicant missed one criteria by a wide margin, eg AV of property (AV more than $21,000)
- Applicant does not have trade income
- Applicant’s employment income does not meet criteria (More than $2300 per month)
- Applicant is not a SEP based on income declaration
- Applicant has filed their income in the wrong category resulting in them having no trade income or exceeding the employment income limit
Improper filing of income
NTUC highlighted that some Self-Employed Persons (SEP) had filed their tax returns as Employment Income when they should have been declared as “Trade” income. It could have been one of the reasons why those eligible have not been auto-included or been rejected. Understand how to file taxes as a Go-Jek/ Grab Driver.
Mistake in tax-filing. How to make right?
NTUC has worked out a solution with the government to help applicants who made the mistake to re-classify their income into the correct category for SIRS application.
Applicants can submit a new application and select on No to this question “Have you declared your income in the right category in your IRAS Notice of Assessment 2019/2020?” and the questions that follow in the form, it will confirm to us that the applicant wishes to reclassify your income.
If you choose to submit via this option, NTUC will have to take a number of additional steps which will extend the processing time by a further 3 to 4 weeks.
Applicants are also informed that making changes to your income declaration has implications. Your present and past years’ CPF obligations may be reassessed arising from your declaration.
If necessary, the CPF Board will follow up with you directly. Please note that your income declaration may also be passed on to IRAS for their further action.
How to Appeal
Applicants who had their application rejected can re-submit another application if their circumstances had changed.
- The SEP had moved to a residence with a lower Annual Value,
- A mistake was made when filing the previous application
- Self-employed income was filed as employment income instead of trade income and you would like to recategorise it for SIRS application purposes.
The SIRS eligibility criteria will still apply.