Have you declared your COVID-19 payments?

Have you declared your COVID-19 payments?

If you are self-employed and the pandemic impacted your income, the COVID-19 payments would have provided a welcome boost. 

But you need to be aware that the grants are classed as taxable income, so they must be declared on your Self-Assessment tax return for 2021/22.

With over 2.9 million people claiming at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2022, this will impact a lot of people.

If you didn’t already know, the deadline to submit your tax return is 31 January 2023, and the sooner you get ready, the better.

What needs to be declared?

As this is not a usual payment that you receive, it is easy to miss these payments when completing your tax return.

The Self-Employment Income Support Scheme (SEISS) application and payment windows during the 2021/22 tax year were:

·        SEISS 4: 22 April 2021 to 1 June 2021

·        SEISS 5: 29 July 2021 to 30 September 2021

Other support schemes were in operation during the pandemic and may also need to be declared on your tax return.

If you also received other taxable support payments during the 2021/22 tax year, you may also need to report this on your Self-Assessment tax return if you are:

·        Self-employed

·        In a partnership

·        Required to otherwise complete a tax return

Further information on which COVID-19 grants you need to declare can be found here.

To make sure you are filling in your tax return correctly, it is best to seek advice from an expert.

Need support with your tax return? Contact our team today.