HMRC have clarified their position on when each of the SEISS grants will be taxable and this will be the Tax Year in which they were received. This means grants 1, 2 and 3 will be taxable in the 2020/21 Tax Year, irrespective of your accounting year end, with grants 4 and 5 being taxable in the 2021/22 Tax Year.
The grants will not be included in the turnover shown on your Accounts but will be included separately within the self-employment pages of your Tax Return. However, the total of the grants received within the Tax Year will be added to your Accounts profits, to give the ‘Profit from self-employment’ figure that will be shown on your Tax Calculation.
Those of you who are eligible to receive the 4th SEISS grant should receive communication from HMRC around mid-April with your personal claim date. The grant will be claimable from late-April till the end of May.
Details regarding the 5th SEISS grant are not yet fully available and so we will update this page in due course. The link below is to the HMRC page which you may wish to keep an eye on:
This year our usual Tax Return Information Form will be emailed out to clients. If you would like a paper copy, please let us know and we will get one posted out to you. Alternatively, go to the ‘Deadlines, Links & Forms’ page where you can download one in either word or pdf format.
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