Business SupportSelf-Employed

Where To Include SEISS Grants On Your Tax Return

Welcome to our most recent blog….Where To Include SEISS Grants On Your Tax Return.

Firstly, What are SEISS Grants?

SEISS Grants, also known as Self-Employment Income Support Scheme grants, were offered to self-employed people during the pandemic and lockdowns. There was a total of 5 SEISS grants, to date. If you have one or more of these SEISS grants, this must be included on your tax return. This is because taxes must be paid on it. The SEISS grants are subject to both income tax and self-employed National Insurance contributions, also known as NIC.

Where Do The SEISS Grants Go On My Tax Return?

If you use a professional accountant this will be really easy, as they will do it all for you or they will talk you through it. However, if you are completing your Self-Assessment tax return via HMRC online, it can be a little complicated.

Firstly, you need to put your turnover (sales) income. You will be asked if you have had any other coronavirus support payments. This includes job retention schemes, but it does not include SEISS grants. This part will come later.

Next, after completing the details about your business expenses and capital allowances you will go to another section. This will be called ‘other tax adjustments for your business trading name. In this section you will see a question that asks about the SEISS grants. You will need to include the total of the first three grants, if you had any. The 4th and 5th grants will be covered in next years self-assessment tax returns, so you don’t need to include those.

However, if you have repaid part or all of the grant you will not need to include it.

If you are a partner in a partnership where the SEISS grants were distributed as part of your partnership income, they will also not need to be included. If you have multiple trades, you will just need to include the proportion of the SEISS grants that you have allocated to the trade to which the return relates to.

In the automatically generation tax calculation, you will see that SEISS grants are included within your ‘profits from self-employment’. These will also be subject to income tax and Class 4 NIC. It is worth noting that these grants will also count as income which looking at the small points threshold for Class 2 NIC purposes.

Finally, as part of the declaration before you submit your completed tax return, you will see there is an additional question for you to tick. This will refer to the coronavirus support payments. You need to tick to confirm that you declared all support payments received from the government during the pandemic. If the only support payment you received were as a result of being furloughed as an employee, you will not need to complete this box.

If you need help understanding where to include SEISS grants on your tax return, call our team now. We will help you in any way that we can.

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