HMRC publishes update for each self-employed person who applied for a SEISS grant since last March

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The UK government has provided £ 25.2 billion in financial assistance to around 2.9 million self-employed workers whose businesses have been affected by the coronavirus through grants from the Self-Employment Income Support Program (SEISS) .

The latest figures from HM Revenue and Customs (HMRC) show that a total of 9.1 million grants have been claimed by self-employed workers across the UK since the program started in May last year.

The HMRC also said 3.4 million self-employed workers were identified as potentially eligible for the fourth SEISS grant – which closed applications on June 1 – but only 2 million (58%) of that figure actually applied. . The average value per application for the fourth SEISS grant was £ 2,800.

Applications for the fifth and final SEISS grant are now open and HMRC has contacted eligible self-employed workers to apply.

However, they also released new guidance on whether self-employed workers should include a Covid-19 grant or support payment on their tax return.

HMRC reminded clients: “Grants and payments for business and self-employment support programs during the coronavirus pandemic are taxable. “

Below is our quick guide on what to include on your tax return.

Who must report a subsidy or alimony

If you received a payment to support you during Covid-19, you may need to report it on your tax return if you are:

  • Self employed
  • In partnership
  • A company

What payments do you have to report?

You must report grants and payments from Covid-19 support programs.

These include:

  • The SEISS scholarship
  • Self-isolation payments
  • The coronavirus retention program (leave)
  • Eat out to help
  • Statutory reimbursement of sickness benefits against the coronavirus
  • Coronavirus-related business support grants
  • Coronavirus-related business support grants

These are grants or payments made by one of the following entities:

  • Local authorities
  • Deconcentrated administrations

These are also called local government grants or business grants.

Examples of such grants in Scotland are:

  • Business support fund
  • Hardship fund for new self-employed workers
  • Difficulty fund for creative, tourism and hotel businesses
  • Pivotal Fund for Business Resilience
  • Aquaculture Difficulties Fund
  • Fund for sea fishing difficulties

Examples of such grants in England are:

  • Small Business Grant Fund
  • Retail, Hospitality and Leisure Grant Fund
  • Local Authority Discretionary Grant Fund
  • Fisheries intervention fund

Examples of such grants in Wales are:

  • Welsh Government Business Grants (Grants 1 and 2)
  • Economic resilience fund

How to report a grant or payment

SEISS payments should be placed in the SEISS Grant box of your self-assessment form. You should record all other taxable Covid-19 payments in the “all other business income” box.

What payments don’t you need to report?

You do not need to report a Covid-19 support payment on your self-assessment tax return if it is a council-paid welfare payment to an individual.

For example to help with:

  • Municipal tax payments
  • Housing allowance

Loans, such as Bounce Back Loans or Coronavirus Business Interruption Loan Scheme are not Covid-19 Support Payments

Help and support

If you are unsure whether the Covid-19 support payment you received is taxable or if you would like further assistance, you should contact the dedicated helpline here.

For more information on applying for the fifth and final SEISS grant, visit the GOV.UK website here.

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