How Will Your SEISS Grant be Taxed? Tax Preparation Specialist Offers Guidance for Those Receiving Self Employment Grant
W
ith the closure date for the fourth round of the government’s SEISS scheme now past, many of the UK’s self-employed have been ensuring that they take advantage of this vital lifeline for businesses adversely impacted by the Covid19 pandemic. However, with much confusion surrounding how the grants should be accounted for and how they will be taxed, David Redfern, tax preparation expert and director of DSR Tax Refunds Ltd, offers his specialist
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guidance for those in receipt of the grants. Self-employed workers who have experienced an adverse effect on their ability to trade due to the Covid19 pandemic have until Tuesday 1st June 2021 to claim the fourth grant in the SEISS (Self Employment Income Support Scheme). SEISS 1 to 3 have already closed to new claims and eligibility for the latest scheme remains similar to previous grants. Redfern explains, “If you are self-employed and your business has been ‘adversely
affected’ by the pandemic you may be eligible to claim the grant, providing that you have already submitted your tax returns for tax years including 2019/20 on or before 2nd March 2021 and that you traded in tax years 2019/20 and 2020/21 and you intend to continue to trade into tax year 2021/22. You must meet HMRC’s profit conditions and have experienced a period of adversity between 1st February 2021 and 30th April 2021”. HMRC’s profit conditions require that any SEISS claimant must have
