Self Employment Income Support Scheme (SEISS) Tax Treatment
HMRC have released draft legislation for the tax treatment of Self Employment Income Support Scheme (SEISS) grant payments.
It has always been stated the the Grant payments will be classed as taxable income.
A question was always whether the March element of the payment should be included in the 5 April 2020 tax return or the full payment in year ended 5 April 2021.
The draft legislation can be found here and the explanatory notes states;
“For grants made under the SEISS, the recipient of the grant is taxed on the amount as
if it were profits of the trade to which it relates in the 2020-21 income tax year.”
Which year to report the grant income on my tax return?
The draft legislation is stating to report the Grants received in full in the year ended 5 April 2021 tax return.
This is currently Draft legislation but we would expect this to be the final rules.
Please do not hesitate to contact us if you have any queries.