You are here: Home - Household Bills - News -

How to include SEISS grants on your tax return

0
Written by: Emma Lunn
28/10/2021
HMRC is contacting self-employed workers who received a Self Employment Income Support Scheme (SEISS) grant with instructions about how to include the payment on their tax return.

SEISS grants are subject to income tax and national insurance contributions and so must be included on your tax return.

Anyone who received a SEISS grant on or before 5‌‌‌‌ ‌April‌‌ ‌2021 is being contacted by HMRC to remind them that these need to be included on 2020-21 self-assessment tax returns.

Paper tax returns for 2020-21 need to be submitted by midnight on 31 October 2021 (this Sunday) while online returns are due by 31​‌‌ ‌January‌‌ ‌2022.

If you received further SEISS grants after 5‌‌ ‌April 2021, these need to be reported on your 2021-22 return, which is due by 31‌‌ ‌January 2023.

If you need to check which SEISS grants you claimed, how much you received, and when, you can login to your Government Gateway account, search ‘return to your claim’ and press the green ‘start now’ button. You will then be able to see details of all your SEISS grants.

How to report SEISS grants on your tax return

If you use an agent or accountant to submit the return on your behalf, make sure to tell them the value of the grant(s) you received, so they can include accurate information on your return.

If you are a partner and your SEISS grants were treated as partnership income that was included in the partnership accounts, you don’t need to include the SEISS grants on the partnership page of your personal tax return.

If you complete your self-assessment tax return yourself, there is a specific place on the self-employment page to tell HMRC about SEISS grants. You must not report your SEISS grants anywhere else on your tax return, for example in the ‘any other income’ box or as part of your turnover figure, as this may result in you being taxed twice.

Guidance on how to complete your return, including which boxes to complete to ensure you accurately report your support grants and payments, can be found in the ‘notes’ pages for each return type.

If you have already submitted your 2020-21 tax return

HMRC is checking tax returns to make sure that SEISS grants have been included correctly. If you have already completed your 2020-21 return and you didn’t report your SEISS grants in the way HMRC expected, it will contact you about any changes that need to be made.

If HMRC amends your return, it’s important that you check the amendment and the SA302 tax form sent to you, to see what HMRC has changed. If you don’t check the changes, there is a risk you will pay tax and national insurance contributions twice on the same SEISS grants.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week