SEISS: HMRC releases fresh details on how self-employed workers will account for support payments

HM Revenue and Customs (HMRC) have released details on how self-employed workers should account for Self-Employment Income Support Scheme (SEISS) funds received during the pandemic.

According to HMRC, workers who claimed SEISS or received furlough, will need to include details of all the taxable coronavirus support scheme payments they received during the 2020 to 2021 tax year.

If they are employed and received Coronavirus Job Retention Scheme (furlough) payments during the 2020 to 2021 tax year, those completing Self Assessment will need to enter their earnings and income tax as stated on their P60, which will include any furlough payments received.

All self-employed workers who received any coronavirus financial support, will need to declare it on form SA103. There are boxes to include payments from any of the following:

• Self-Employment Income Support Scheme (include details of grants 1 to 3 in your 2020 to 2021 tax return)

• Coronavirus Job Retention Scheme

• Eat Out to Help Out Scheme

• any other applicable HMRC coronavirus support scheme

• payments that you were entitled to receive from local authorities or devolved administrations.

For those that have claimed a fourth Self-Employment Income Support Scheme grant, they will need to declare it in their 2021 to 2022 tax return. The deadline is 31 January 2023.

The information comes as part of a new Self Assessment guide released today that should help customers navigate the tax return process. It includes helpful information on:

• How to get help with your tax return

• What to do when declaring furlough payments, Self-employed Income Support Scheme grants or other COVID-19 support measures

• What information you need before you can start your tax return

• Help with paying your bill, and

• What to do if you have paid too much tax.

HMRC also revealed that more than 63,500 customers filed their 2020/21 tax return online on 6 April. That number is part of almost 950,000 online Self Assessment returns received so far this tax year, and HMRC are urging others to do the same and file their tax returns early.

HMRC has seen a growing trend in early filers. In the last five tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There are many advantages to completing your Self Assessment tax return sooner rather than later, not least that if you’re due tax refund you’ll get the money within a few days.

“Our new online guide helps answer many of the questions customers have about Self Assessment. Go to GOV.UK and search ‘file your tax return early’.”