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Will I pay tax on my SEISS grant money?

Author: ICAEW

Published: 16 Dec 2021

If you claimed and received coronavirus grants as a self-employed person make sure you know how and when HMRC will charge tax on them.

SEISS grants are taxable

Money received by self-employed individuals from the self-employment support scheme (SEISS) are included when calculating income tax and national insurance for the tax year.

This means if you received SEISS grants under any version of the scheme these monies will need to be declared on either your 2020/21 self-assessment tax return due by 31 January 2022 or your 2021/22 self-assessment tax return due by 31 January 2023.

SEISS grants may need to be repaid to HMRC

If you were not eligible for any of the grants but received money you will need to tell HMRC. If you received more funds than you were entitled to these will need to be repaid. You may be charged a penalty if you do not do this.

An ICAEW Chartered Accountant can help you report and pay correctly by:

  • Telling you which tax return each SEISS grant should be declared on.
  • Advising you how much tax to pay and when.
  • Comparing turnover reported on the 5th version of the grant claim and turnover stated in your self-employed accounts.
  • Explaining when money needs to be repaid to HMRC and how to do this.
  • Helping you if you have made a mistake on your tax return or need to change the entries.