Tax returns and SEISS payments – what you need to include on your tax return

Tax returns and SEISS payments (the Self Employed Income Support Scheme) may not first come to mind when you are completing a 2020/21 tax return by the 31 January 2022 deadline. However, anyone who received this payment (which most self-employed business may have) are required to include this, as well as other Covid-19 support grants/payments on their Self Assessment tax return.

Today, HMRC has issued a reminder that anyone who received COVID-19 grant payments during the 2020/21 tax year is required to declare them on their tax return.

HMRC estimate that more than 2.7 million people claimed at least one payment from the Self-Employed Income Support Scheme (SEISS) up to 5 April 2021(the period which applies to the 2020/21 tax return).

As SEISS grants are taxable, these must be declared in a tax return before the 31 January 2021 deadline.

Tax returns and SEISS payments – payment windows

The application and payment windows for the SEISS within the 2020/21 tax year are as follows:

  • SEISS grant 1: 13.05.2020 to 13.07.2020
  • SEISS grant 2: 17.08.2020 to 19.10.2020
  • SEISS grant 3: 29.11.2020 to 29.01.2021

Declaring other support payments

As well as the SEISS payment, if any taxpayers received other support payments relating to COVID-19 during the tax year, these may also have to be reported on their tax return for those who are self-employed, in a partnership or in a business. These include (but are not limited to):

  • The Coronavirus Job Retention Scheme (CJRS)
  • Coronavirus Statutory Sick Pay Rebate
  • Coronavirus Business Support Grants
  • Small Business Grant Fund
  • Retail, Hospitality and Leisure Grant Fund
  • Local Authority Discretionary Grant Fund
  • Self-isolation/Test & Trace payments in England, Scotland and Wales

Further information on which payments should be included within the 20/21 tax return can be found on the Government website here.

Updating Self Assessment tax returns and SEISS payments

For those who have completed their Self Assessment tax return and did not enter the required information regarding SEISS payments and taxable Covid-19 payments, returns can be amended for 12 months after the 31 January deadline.

It is important to remember that interest will be due on any tax that is outstanding as of 31 January 2022, so it is prudent to make sure that any tax returns are as accurate as possible, and the correct amount of tax is paid on time.

If you think you need to change your Self Assessment tax return, further information can be found here.

Tax advice from Alexander & Co

We can provide a tax advisor to help guide you through everything you need to know when it comes to navigating tax, which included advice on Self Assessment Tax Returns, which we can calculate and file on your behalf.

Our tax team will work with you to understand your objectives and provide comprehensive tax planning to suit your objectives. For further information, please complete the form below, email or call us on 0161 832 4841.

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