As we look towards the Self Assessment Tax Return deadline date all claimants of the Self-Employment Income Support Scheme (SEISS) grants should be aware of the reporting requirements and tax treatment of these grants.
The grants are subject to income tax and self-employed National Insurance contributions (NIC).
The first three grants must be included on the 2020/21 self assessment tax return.
On the main tax return (SA100) you will need to complete box 20.1 which states ‘If any of your businesses received coronavirus support payments (such as CJRS, SEISS) you must put ‘X’ in the box to declare that they have been included as taxable income when calculating profits in the period of this return’
Also you need to include the SEISS grants in box 27.1 Self-Employment Income Support Scheme grant on the short pages and in box 70.1 Self-Employment Income Support Scheme grant on the full pages.
The 4th and 5th grants are taxed in the tax year they are received, this should be 2021/22.
Please remember to supply details of any grants claimed with your usual accounting records, or alternatively please contact your local office where a member of our staff will be pleased to assist.