Reporting SEISS grants on your tax return

Reporting SEISS grants on your tax return

Do you know what the requirements are in terms of reporting SEISS grants on your tax return?  If not, this very brief summary of the latest information will hopefully help.

As Self-Employment Income Support Scheme (SEISS) grants are taxable, if you claimed them they need to be declared on your tax return.

Advice for partnerships

If you are partners and claimed under the SEISS, how your grants are treated for tax purposes depends on who received the grants.

  • For most partners, HMRC paid the SEISS grant directly into their individual bank account, meaning it is not recorded as partnership income in the partnership accounts. If you received SEISS grants in this way you should report the grant as an addition to partnership income on the partnership supplementary pages.
  • Grants paid on or before 5 April 2021 should be included on the 2020-21 return, using box 9.1 on the partnership supplementary pages (SA104S or SA104F).
  • Your SEISS grants should not be included on the partnership tax return (SA800).
  • If the grant was paid to the partnership and treated as partnership income, included in the partnership accounts and distributed to all partners in line with the partnership agreement, you should include the grant amount within the turnover boxes on the partnership tax return (SA800).
  • SEISS grants should not be included on the individual’s partnership supplementary pages (SA104S or SA104F) as they would already be reflected in the amount of income received from the partnership.
  • Take care not to report the grant again on the SA104S or SA104F, as you may be taxed twice.

What to do if your accounting year is different to the tax year

All SEISS grants received before 6 April 2021 are taxable in the 2020-21 tax year, regardless of the recipient’s accounting period. This is because SEISS grants are intended to provide broadly real time support for businesses during the pandemic. Taxing SEISS grants in this way ensures fairness, in that all recipients report and pay tax on the grant at the same time, regardless of their accounting date.

If your return is amended by HMRC

If you claimed a grant but do not fill in the box for SEISS grants on your return, or if the amount in the box is different to HMRC records, they will update your return and contact you. You should check the changes made and follow the instructions at gov.uk/check-your-return-for-seiss.

Help with reporting SEISS grants on your tax return

If you need help with this or any other aspect of your Self Assessment, Partnership or Corporation Tax contact me now.