Tax treatment of SEISS grants If you received any or all of the first, second or third SEISS grants, you will need to include these in your self-assessment return for the tax year 2020/21, which you have to submit by 31 January 2022. The grants are liable to income tax and class 4 national insurance but they are entered in a separate box on your tax return and NOT included in your self employed accounts If you receive the fourth
The Self-Employment Income Support Scheme (SEISS) will continue until September with a 4th and 5th grant. The 4th and 5th grants will take into account submitted 2019/20 tax returns which good news for those who missed out on the first 3 grants 4th SEISS grant This is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant is based on average profits for 2016/17
11,000 people are receiving letters from HMRC questioning their claims for self-employment support grants. HMRC sent 24,000 similar letters last year to claimants who said they had stopped trading. HMRC has sent letters to self employed people who noted that they had ceased trading either on their 2019/20 tax return or by amending their return for the previous year. HMRC are quoted as saying “If the taxpayer claimed correctly, we may ask them for extra documentation to show this. If
Third SEISS grant deadline The third grant of the Self-Employment Income Support Scheme (SEISS) closes for claims on Friday 29 January. Eligible customers must claim on or before this date. You can find everything you need to know about the third SEISS grant here Here are some answers to the most frequently asked questions as provided my HMRC Am I eligible for the third SEISS grant? You can find all you need to know about SEISS, including the eligibility criteria for
The Self Employed Support Scheme Grant % has increased Yesterday it was announced that the SEISS grant % has again been changed and it will now be 80% for the 3 months 1 November 2020 to 31 January 2021 and the 4th grant % will be announced nearer to the date This is still treated as income and subject to tax and national insurance in the usual way The online service for the next grant will be available from 30 November 2020. HMRC will provide
Sasha Owen
BSc FCA
Chartered Accountant
