Reporting SEISS grants on Self Assessment tax returns is required as they are taxable and subject to self-employed National Insurance contributions.
From the 19th of June, HMRC will be automatically correcting returns and issuing a notice to tell you that they have done this. However, incorrect returns received before that date will need to be corrected separately and HMRC will share details of any actions you need to take, as soon as possible.
If you are preparing your own tax returns I can help you with this. You can find more guidance on GOV.UK by searching ‘file your tax return early’. As a reminder, you should only use the following boxes when reporting SEISS grants on Self Assessment tax returns for 2020-21:
- box 70.1 on the Self Employment (Full) page of the tax return
- box 27.1 on the Self Employment (Short) page of the tax return
- box 9.1 of the partnership supplementary pages of the tax return
- box 3.10A of the SA200 (Short) tax return.
It’s incorrect to report SEISS grants as turnover, or ‘any other income’. You should not report their SEISS grants in any other boxes than those listed above.
Paying back overpaid SEISS grants
If an amendment has been made to your tax returns for 2016-17 to 2019-20 on or after 3 March 2021, you will need to check if your claim for the fourth SEISS grant has been affected. This requirement applies to claims for the fourth and fifth SEISS grants only.
You can tell HMRC if you need to pay back some or all of a SEISS grant by completing a simple form online. You will not have to calculate the impact on the SEISS grant yourself as they will then contact you with details of how much you need to repay, and how to do this. More information can be found on GOV.UK by searching ‘pay back SEISS’.
Help and support with reporting SEISS grants on Self Assessment tax returns
If you need help with this or any other aspect of your Self Assessment Tax contact me now.