As you will be aware, there have been many taxable grants and support payments available from government schemes for both businesses and self-employed individuals during COVID-19. The government has now produced guidance to assist individuals when deciding whether or not such payments should be included on their Self-Assessment Tax Return (where their agents do not complete either SA103S or SA103F on their behalf already).
Who should report a grant or support payment?
Individuals that received a grant or support payment during COVID-19, may need to report this on their tax return if they are:
- In a partnership
- A business.
Payments that need to be reported
Grants and support payments from COVID-19 support schemes should be reported. These include:
- The Self Employment Income Support Scheme (SEISS)
- Test and Trace or self-isolation payments
- The Coronavirus Job Retention Scheme (CJRS)
- Eat Out to Help Out
- Coronavirus Statutory Sick Pay Rebate
- Coronavirus Business Support Grants, also known as local authority grants or business rate grants and made by one of the following:
- Local authorities
- Devolved administrations.
A list of grants made by devolved administrations can be found here but some examples of such grants in England are:
- Small Business Grant Fund
- Retail, Hospitality and Leisure Grant Fund
- Local Authority Discretionary Grant Fund.
Payments that do not need to be reported
Any COVID-19 support payments made by a council to an individual and classed as a welfare payment, do not need to be reported. These include:
- Council tax payments
- Housing benefit.
Loans, such as Bounce Back Loans or those from the Coronavirus Business Interruption Loan Scheme (CBILS) are not classed as COVID-19 support payments and therefore do not need to be reported.
How to report a grant or payment
Any SEISS payments should be reported in the ‘Self Employment Income Support Scheme Grant’ box within the Self-Assessment form. All other taxable COVID-19 payments should be reported in the ‘any other business income’ box.
Individuals who are self-employed can find out how to report grant or support payments as follows:
Individuals in a partnership can find out how to report grant or support payments as follows:
For further guidance as to whether a COVID-19 support payment is taxable, please contact the Coronavirus (COVID-19) helpline.