Then you have accounted for it wrong I think? As I understand it self employed support payments where made to the individual not their self employed business... as such if the money was either paid directly or transferred into your business it should be treated as owner introduced capital not income. These payments are to be reported separately on self assessment so when you report it separately and it also sits inside your profit figure you could be getting taxed on it twice I think? Like you we met the criteria to claim the first payment but awkwardly, and partly because of the death of a family member and business partner, we didn't make some planned spending and investments in the back end of the 2020-21 tax year. Having accounts showing a higher profit in the year when the grant was claimed may be problematic fortunately neither the first or second round grants specified you had to be adversely affected financially, "shielding" and "caring responsibilities" certainly had an very noticeable adverse affect on our operations.Had an interesting chat yesterday with the accountant, and touched on the self employed support payment at the height of covid last year... I think there were 5 in total...?
Apparently, there are a few less than aware types, not declaring the payment in their tax returns.... HMRC have their computers flagging up any inconsistencies in returns and are looking hard at questionable activities.
We took one payment, and it went straight into the business a/c and was shown as income.
edit sorry I think you are actually correct. You can either declare the grant outside of the partnership or as income inside it, just take care to avoid doing both!