Don’t forget to declare COVID-19 grants on your tax return

December 15, 2021

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 5 April 2021. These grants are taxable and customers should declare them on their 2020/21 tax return before the deadline on 31 January 2022.

The SEISS application and payment windows during the 2020/21 tax year were:

  • SEISS 1: 13 May 2020 to 13 July 2020
  • SEISS 2: 17 August 2020 to 19 October 2020
  • SEISS 3: 29 November 2020 to 29 January 2021

SEISS is not the only COVID-19 support scheme that customers should declare on their tax return. 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 GOV.UK.

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 help sheets available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

HMRC has created resources to help customers complete their tax return including a playlist on YouTube, webinars and help sheets 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.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

Cambridgeshire Chambers of Commerce