HM Revenue and Customs (HMRC) has issued guidance for self-employed workers regarding the Self Employment Income Support Scheme (SEISS).
Through SEISS, the government has paid £25.2 billion to self-employed individuals whose business has been affected by the Covid-19 pandemic.
New figures from HMRC reveal that over 9 million claims have been made since the scheme began last year.
HMRC also revealed that although 3.4 million people were deemed to be eligible for the fourth release of the grant, only around 2m actually did.
With applications for the fifth - and last - grant now open, the government department has released advice to eligible self-employed workers on whether they are required to add a Covid-19 grant or support payment on their tax return.
HMRC stated: “Grants and payments from schemes to support businesses and self-employed individuals during the coronavirus pandemic are taxable.”
As reported by the Daily Record, here is a quick guide on what to include in your tax return.
Who should report a grant or support payment
If you were given a payment to support you during the pandemic, you may need to report this on your tax return if you are:
- Self-employed
- In a partnership
- A business
Which payments do you need to report?
You need to report grants and payments from Covid-19 support schemes.
These include:
- The SEISS grant
- Self-isolation payments
- The Coronavirus Job Retention Scheme (furlough)
- Eat Out to Help Out
- Coronavirus Statutory Sick Pay Rebate
- Coronavirus Business Support Grants
- Coronavirus Business Support Grants
These are grants or payments made by one of the following:
- Local authorities
- Devolved administrations
