HM Revenue and Customs (HMRC) is reminding Self Assessment customers to declare any Covid-19 grant payments on their 2020/21 tax return.
More than 2.7 million customers claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to April 5, 2021. These grants are taxable and customers should declare them on their 2020/21 tax return before the deadline at 11.59pm on January 31, 2022.
The SEISS application and payment windows during the 2020/21 tax year were:
- SEISS 1: May 13, 2020 to July 13, 2020
- SEISS 2: August 17, 2020 to October 19, 2020
- SEISS 3: November 29, 2020 to January 29, 2021
The third and fourth SEISS grants fall under the 2021/22 tax year and do not need to be declared in this return. However, HMRC is reminding tax customers that SEISS is not the only Covid-19 support scheme that they should declare on their tax return for 2020/21.
If customers received other support payments during Covid-19, they may need to report this on their tax return if they are:
- self-employed
- in a partnership
- 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 here.
HMRC stresses it is important that customers check and make any changes to their tax return to make sure any SEISS or other Covid-19 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.”
HMRC has created resources to help customers 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, worth £46 million.
The online payment plan helps customers 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 customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
Who needs to complete a Self Assessment tax return?
HMRC says customers must complete a Self Assessment return if they:
- earned more than £2,500 from renting out property
- received, or their partner has received, Child Benefit and either of them had an annual income of more than £50,000
- received more than £2,500 in other untaxed income, for example from tips or commission
- are a self-employed sole trader whose annual turnover is more than £1,000
- are an employee claiming expenses in excess of £2,500
- have an annual income of more than £100,000
- have earned income from abroad that they need to pay tax on
The 2020/21 tax return covers earnings and payments during the coronavirus pandemic.
Customers will need to declare if they received any grants or payments from the Covid-19 support schemes up to April 5, 2021 on their Self Assessment, as these are taxable.
These include:
- Self-Employment Income Support Scheme (SEISS)
- Coronavirus Job Retention Scheme (also known as the furlough scheme)
- Self-isolation payments
- Local authority grants
- Eat Out to Help Out scheme
The £500 one-off payment for working households receiving Tax Credits should not be reported in Self Assessment.
How to pay your tax bill
Various payment options include:
- paying through a customers’ tax code (PAYE customers only)
- Payment on Account
- setting up an online monthly payment plan (self-serve Time to Pay)
- paying by debit or corporate credit card
- paying at a bank or building society
Customers should contact HMRC if they have concerns about paying their tax bill.
Visit GOV.UK for a full list of payment options and the eligibility criteria here.
Tax returns over festive period last year
In total, 31,400 customers completed their 2019 to 2020 Self Assessment tax returns between December 24 and 26, 2020.
Christmas Eve
20,200 tax returns filed
Peak time for filing was between 11:00 and 11:59 when 2,892 returns were received
Christmas Day
2,700 tax returns filed
Peak time for filing was between 14:00 to 14:59 when 214 returns were received
Boxing Day
8,500 tax returns filed
Peak time for filing was between 15:00 to 15:59 when 858 returns were received
HMRC is also warning customers to be aware of copycat websites and phishing scams.
HMRC advises customers to always type in the full online address www.gov.uk/hmrc to get the correct link for their Self Assessment tax return securely and free of charge.
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