SEISS grants – don’t forget that they are taxable! But were you eligible?

Date posted: 4th Nov 2021

The self employed income support scheme (SEISS) grants were made available by HMRC last year, as a result of the lockdowns imposed under the COVID-19 legislation which meant that self employed individuals trading profits were likely to decrease.  Hence the grants were introduced to replace that income.

These grants are subject to both tax and national insurance so should be reported on your tax returns – the tax year of the reporting may depend upon a) the type of unincorporated business that you operate, b) the accounting period of your unincorporated business and c) particularly for partnerships, how the grants were accounted for i.e. within the partnership or by the individual partners.

We also understand that HMRC are writing to individuals who have received the Self Employment Income Support Scheme (SEISS) grants in respect of whether they were eligible for these grants. To be eligible, one condition was that the business must have continued to trade throughout 2019/20. However, in some instances no 2019/20 tax returns have been submitted (by 31 January 2021), so HMRC are unsure whether the qualification conditions were met. HMRC are requesting that those individuals that have not submitted their 2019/20 Tax Returns, do so as soon as possible or HMRC will request that the grants to be repaid.

If you have received SEISS grants that you were not entitled to or need help declaring the grants to HMRC as income, please give us a call.


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