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SEISS: Self Employed Income Support Scheme

This article is in relation as to how to record any monies you receive as part of the SEISS programme. If you’d like information on how to claim, click here.

If you have received monies as part of a grant or government scheme, you’ll need to declare these on your self assessment tax return.

Grants such as the SEISS programme are taxable, and subject to both income tax (usually at 20%) and National Insurance contributions at the rate applicable when you complete your return.

SEISS grants are not subject to VAT thresholds (i.e. do not count towards the threshold) and are not VAT-able for consultants who pay VAT.

You should not add details of any schemes or grants from the UK Government to your accounting spreadsheet as the spreadsheet is designed to show how your business is performing from income/expenses. SW supported income can be added to the spreadsheet as this is relevant to your business.

The grant is a ‘separate’ income for purposes of your tax return and is declared on your tax return in a dedicated’ section.

Which grants to place where?

Providing you follow the standard financial year (6 April – 5 April) timeline, you’ll record your grants as below

  • SEISS Grants 1, 2 and 3 are included on your 2020/21 Tax Return
  • SEISS Grants 4 and 5 will appear in the 21/22 return

If you run a different tax year, you’ll need to check the date when the grants were paid to identify which tax return they should be recorded on.

Adding to the tax return

When starting your return online (step by step is here), you’ll be greeted with a message on the main screen:

Therefore keep your grant information to hand, as you’ll need to advise of these amounts shortly.

When completing your return, in the ‘Other Tax Adjustments’ screen, you’ll be asked a question:

This is where you should enter the full amount of the grant(s) received during the relevant tax year. There is a ‘total’ trading profit figure behind this box which will increase when the value is added.

Any income amounts above your personal allowance will be subject to tax and national insurance.

Updated on September 1, 2021

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