Government support schemes taxable

HMRC have issued a press release to advise customers that COVID-19 grants must be declared on your 2020-21 tax return.

Over 2.7 million HMRC self-assessment customers claimed at least one Self-Employment Income Support Scheme (SEISS) up to 5th April 2021. These support grants are taxable, and they should not be forgotten when it comes to filling out your tax return.

The SEISS application and payment windows during the 2020 to 2021 tax year were:

  • SEISS 1: 13th May 2020 to 13th July 2020
  • SEISS 2: 17th August 2020 to 19th October 2020
  • SEISS 3: 29th November 2020 to 29th January 2021

While it is important to remember the SEISS grants on your tax return, this is not the only support scheme that customers should be mindful of including. If any other grants were received, and if you are self-employed, in a partnership or run a business, then these must also be included on your return.

HMRC guidance

HMRC have confirmed a list of grants which must also be reported:

  • The Self-Employment Income Support Scheme (SEISS)
  • Test and trace or self-isolation payments in England, Scotland, and Wales
  • The Coronavirus Job Retention Scheme (CJRS)
  • Eat Out to Help Out
  • Coronavirus Statutory Sick Pay Rebate
  • Coronavirus Business Support Grants

An exhaustive guide on reporting COVID-19 support grants can be found here.

If an accountant completes your tax return on your behalf, it is important to ensure you have provided the relevant information to them and to check once drafted that any SEISS or other COVID-19 support payments have been reported correctly.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

“We want to help customers get their tax returns right, first time. We have videos, guidance and help sheets available online to support you with your self-assessment. Search ‘help with self-assessment’ on GOV.UK to find out more.”

As always, if you would like any further information regarding the above, please feel free to contact our team by email