Self Assessment Tax Returns & Coronavirus Support

During the 2020/21 tax year, many individuals and businesses received state grants in order to support them during the COVID-19 pandemic and associated lockdowns. HMRC has issued a reminder that taxpayers (including sole traders and partnerships) must remember to include grants or payments received from coronavirus support schemes in their self-assessment tax returns. This is particularly relevant given the pressing 31 January 2022 deadline. COVID-19 support grants and payments include:

• Self-Employment Income Support Scheme (SEISS)
• Coronavirus Job Retention Scheme (CJRS)
• Other COVID-19 grants and support payments, including self-isolation payments, local authority grants, and Eat Out to Help Out.

Failure to include all taxable grants may result in penalties and interest, so it is paramount that all payments are considered and reported in your tax return where necessary. Companies should also be aware that support grants received will need to be included in their corporation tax returns for the appropriate accounting period. If you have received a payment or grant and are unsure of your liability to UK tax, or if you require assistance with submitting your 2020/21 tax return more generally, please contact a member of our team. Related Articles https://www.stratostax.co.uk/insights/winter-is-coming-further-support-for-businesses/ https://www.stratostax.co.uk/insights/a-little-hospitality-new-grants-announced-for-businesses-impacted-by-local-lockdowns/