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

HMRC are reminding those who received COVID-19 grant payments during the 2020 to 2021 tax year that they should declare them in their tax return. Please double check your return to ensure all Covid grants are included as HMRC will certainly be investigating this thoroughly after returns are submitted. HMRC have provided guidance which you can find by followiong this link.

More than 2.7 million taxpayers claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2021. It’s important to remember that these grants are taxable and they should be declared on 2020 to 2021 tax returns before the deadline on 31 January 2022.

The SEISS application and payment windows during the 2020 to 2021 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 should be declared on tax returns. If you received other support payments during COVID-19, you may need to report this on your tax return if you 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.

If you think you may be affected but are still unsure, please get in touch with a member of the team.