The government has paid out £25.2 billion to around 2.9 million self-employed people through Self Employment Income Support Scheme grants.
The latest figures from HMRC show that 9.1 million grants have been claimed in total by self-employed people across the UK since the scheme launched in May last year.
HMRC also said that 3.4m self-employed individuals were identified as potentially eligible for the fourth SEISS grant but that only 2m of that figure have actually made a claim - reports the Daily Record.
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The average value per claim for the fourth SEISS grant was £2,800.
Applications for the fifth and final SEISS grant are now open and HMRC has contacted eligible self-employed workers to make their claim.
However, they have also issued new guidance on whether self-employed workers need to include a Covid-19 grant or support payment on their tax return.
HMRC reminded customers: “Grants and payments from schemes to support businesses and self-employed individuals during the coronavirus pandemic are taxable.”
Below is a guide on what to include in your tax return.
Who should report a grant or support payment
If you received a payment to support you during Covid-19, 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
These are also known as local authority grants or business rate grants.
Examples of these grants in England include:
- Small Business Grant Fund
- Retail, Hospitality and Leisure Grant Fund
- Local Authority Discretionary Grant Fund
- Fisheries Response Fund
How to report a grant or payment
SEISS payments should be placed in the SEISS grant box on your Self Assessment form.
You should record all other taxable Covid-19 payments in the ‘any other business income’ box.
Which payments do you not need to report?
You do not need to report a Covid-19 support payment on your Self Assessment tax return if this is a welfare payment made by a council to an individual.
For example to help with:
- Council Tax payments
- Housing Benefit
Loans, such as Bounce Back Loans or those from the Coronavirus Business Interruption Loan Scheme are not Covid-19 support payments.
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