Self-Employment Income Support Scheme (SEISS) REMINDER!

Self-Employment Income Support Scheme (SEISS) REMINDER!

By Published On: 28 June 2021Categories: Limited Company, Tax

What is SEISS?

The Self-Employment Income Support Scheme (SEISS) was made available to those who are self-employed or a member of a partnership, who were affected by coronavirus. If you lost out on income or had to stop working in order to look after someone you could apply for money from the government through SEISS. It allowed you to receive 80% of your average profits, up to a maximum of £7,500 for three months.

Applying for the grant

The last available date for applying for SEISS was June 1st 2021, and therefore is no longer available.

Paying it back

If you took up the SEISS you won’t have to pay it back (unless you’ve stopped trading during this tax year), but you will have to pay tax on it in the form of taxable income for the tax year 2020/21. The only revision to this is that if a payment was made to a partner distributed among a partnership will be unchanged.

How will you be taxed?

The SEISS payments must be taxed in the year they’re received. The tax year and therefore tax return you include your SEISS grants in will depend on what type of grant it is and if you’re self-employed, or a partner in a partnership. The following table shows you what you can expect:

SEISS grant Business type Grant to be included in which tax return
Grants 1, 2 or 3 Self-employed  

The self-employed section / pages of the 2020/21 tax return. The first three grants must be included in your 2020/21 tax return, regardless of which accounting period you use.

Grants 1, 2 or 3 Partner in partnership If you received your SEISS grant/grants into your own personal bank account, and it was not recorded as partnership income in your partnership accounts, the grant is treated in the same way as if you were self-employed. This means that:

· Grants 1, 2 and 3 must be included on your 2020/21 tax return, regardless of your partnership’s accounting period. Include the full amount of your SEISS grants on your supplementary pages, in box 9.1 on either the SA104S short partnership pages or the SA104F full partnership pages. Do not include your SEISS grants on the partnership tax return (SA800).

Grants 4 or 5 Self-employed These grants will be taxed within the tax year that they are received, therefore this should be 2021/22.
Grants 4 or 5 Partner in partnership These grants will be taxed within the tax year that they are received, therefore this should be 2021/22 and must be included in the partnership 2021/22 supplementary pages.

How Vantage can help

Tax is confusing at the best of times, and it’s so easy to make a simple mistake if it’s not your speciality. Small mistakes can lead to big problems further down the line, that’s why it’s such a good idea to enlist the services of an accountant who will be able to help you get it right first time. Here at Vantage we do just that, aiding small business owners with their daily tax obligations and tax needs, ensuring its right first time. If this sounds like the kind of expert advice and support you need for your business, get in touch today.

Note: All the information and advice in this blog post was correct at the time of writing.

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