HMRC is reminding self assessment customers to declare any Covid-19 grant payments on their 2020/21 tax return, including SEISS claims which are taxable
More than 2.7 million customers claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2021. These grants are taxable and taxpayers must declare them on their 2020/21 tax return before the deadline on 31 January 2022.
What are the SEISS application and payment windows during the 2020/21 tax year?
The SEISS application and payment windows during the 2020/21 tax year were:
If taxpayers received other support payments during the pandemic, including Coronavirus Job Retention Scheme (CJRS) grants, they may need to report this on their tax return if they are self-employed; in a partnership; or a business.
Information on which support payments need to be reported to HMRC and any that do not is available on the gov.uk website.
It is important that taxpayers check and make any changes to their tax return to make sure any SEISS or other Covid-19 grants and support payments have been reported correctly in their self assessment.
Myrtle Lloyd, HMRC’s director general for customer services, said: ‘We want to help customers get their tax returns right, first time. We have videos, guidance and helpsheets available online to support you with your self assessment. Search ‘help with self assessment’ on gov.uk to find out more.’
HMRC has created resources to help taxpayers complete their tax return including a playlist on YouTube, webinars, and helpsheets and guidance available on gov.uk.
HMRC recently announced that more than 20,000 customers, who were unable to pay their tax bill in full, had used the self-serve time to pay facility, bringing in an estimated £46m. The online payment plan helps taxpayers who may feel worried or anxious about paying any tax owed by enabling them to spread the amount into manageable monthly instalments, up to the value of £30,000.
If taxpayers owe more than £30,000, or need longer to pay, they should call the self assessment payment helpline on 0300 200 3822.
HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. Taxpayers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their self assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search gov.uk for ‘HMRC scams’.
Taxpayers that were employed and received CJRS (furlough) payments during the 2020/21 tax year will need to enter earnings and income tax as stated on their P60. The P60 will include any furlough payments received up to 5 April 2021, so these furlough payments do not need to be included on tax returns.
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