HMRC is reminding taxpayers to declare their self-employed income support scheme (SEISS) payments in their self-assessment return for the 2021/22 tax year.
The Government paid SEISS grants to eligible businesses adversely affected by the Covid-19 pandemic, with over 2.9million people claiming at least one SEISS payment in the 2021/22 tax year.
The grants are subject to both income taxand National Insurance contributions (NICs) and must be declared before theapproaching self-assessment return deadline on 31 January 2023.
Self-assessment taxpayers are warned notto include their SEISS grant in the ‘any other business income’ section oftheir return as there is a separate section dedicated to it.
Self-employed people and businesses that received other support payments through Covid-19 support schemes, including furlough and the ‘eat out to help out scheme’ should check to see if they need to be declared as well.
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.”
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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