HMRC is reminding taxpayers to declare their Self-Employed Income Support Scheme (SEISS) payments in self-assessment returns for the 2021/22 tax year.
The SEISS grants were paid by the government to eligible businesses that were adversely affected by the Covid-19 pandemic. More than 2.9 million people claimed at least one SEISS payment during the 2021/22 tax year.
The grants must be declared before the upcoming self-assessment return deadline on 31 January 2023 and are subject to both Income Tax and National Insurance Contributions.
There is a dedicated section on the self-assessment return, relating specifically to SEISS grants, so taxpayers have been warned not to include it in the “any other business income” section.
Self-employed people and businesses that received payments through other Covid-19 support programmes, such as furlough and the ‘Eat Out To Help Out Scheme’, have been advised to find out if they need to be declared as well. However, it should be noted that, in most cases, furlough payments received to cover salary should be included in the accounts.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“We want to help customers get their tax returns right the first time. We have videos and guidance available online to support you with your self-assessment.”
In the current financial climate, HMRC also reminded businesses that if they cannot afford their tax bill, they should get in contact as soon as possible so arrangements can be made.
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