If you received the first or second Self-Employment Income Support Scheme grant, you will need to include it in your Self Assessment tax return.

What is SEISS?

SEISS, or the Self-Employed Income Support Scheme formed part of the support package for businesses suffering during the coronavirus pandemic. The scheme was launched by the Government on 13th May 2020. The first grant provided self-employed workers a grant of 80% of their profits, up to £2,500 a month from March to May 2020.

Those eligible to claim the second and final grant could receive 70% of their average monthly profits.

Why do I need to include SEISS in my tax return?

The Self-Employed Income Support Scheme is taxable, which means it is subject to income tax and National Insurance. The amount of grant that you receive will be included in your tax calculation, so you must show it on your Self Assessment tax return.

Which tax return should I include my SEISS payment in?

Although you receive a single payment, the first grant is in respect of the months March, April and May 2020, covering two tax years. But, any money you receive through SEISS should be included in the tax return which covers the year you receive the grant. This means that you will need to include it in your 2020/21 Self Assessment tax return. Draft legislation published on 29th May 2020 also suggests that the whole SEISS grant will be taxable in the 2020/21 tax year.

How much tax and NI will I have to pay on my SEISS grant?

The amount of tax and National Insurance you have to pay on your income depends on how much you earn. This is because of the way that different income thresholds and tax allowances affect the way your bill is calculated. Read our article about income tax and national insurance for the self-employed to learn more.

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