HMRC SEISS GUIDANCE: How and where to account for your FIVE self-employment support grants

Latest HMRC guidance runs through finalised details on how and where self-employed workers should be accounting support grants taken as a result of the pandemic.

Most importantly Self-Employed Income Support Scheme (SEISS) grants are taxable. Self-Employed workers will need to report any grants they receive on the correct year’s return using the correct box. Grants should however not be included in the worker's turnover and instead included in a separate box.

The first, second and third grants must be reported on tax returns for the year in which they were received – in the majority of cases, this will be the 2020-21 tax return to be submitted by 31‌‌ January‌‌ 2022. If, exceptionally, the first, second or third grant was received on or after 6 April 2021, the worker will need to report this instead on the 2021-22 tax return.

The fourth and fifth grants should be included in the 2021-22 Self Assessment tax returns, which cannot be submitted yet.

When reporting these grants, self-employed workers should use the following boxes on their return:

Last week HMRC released further critical guidance for workers looking to claim their fifth and final SEISS grant.

In the new guidance, HMRC detailed who was eligible and how struggling self-employed workers can make the claim.

HMRC will contact eligible workers from mid-July to give them a personal claim date. Eligible customers can apply anytime from their personal claim date until 30‌‌ September‌‌ 2021. The online claims service will open from late July.

The value of the fifth and final grant will be determined by how much the worker’s turnover has been reduced in the year 2020-21 compared to before the pandemic.

People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850.