When do I include SEISS payments?
Updated: Nov 11, 2021
We have had a number of clients who have supplied us with their 2020-21 self-employment data already, but It has come to light that there is some confusion over the dates at which the SEISS grants should be reported.
Most self-employed people finish their accounting year (known as a basis period) on the 5th of April every year, but some do not. In one extreme case, we have one of our clients that finishes his accounts on the 30th of April. This means his 2021 accounting year starts on the 1st of May 2019 and finishes on the 30th of April 2020. To add to the confusion, he can only file this information after the 6th of April 2021, and he then has until the 31st of January 2022 to pay any tax due. That is a full 21 months later!
It is no wonder there is so much confusion.
So what happens to SEISS?
The grants are taxable in the fiscal year they are received, not your accounting year. This means that the first three grants are taxable in the tax year 2020/21 - April to April. They should be reported in full on your 2020/21 self-assessment tax return in due course. According to the Chartered Institute of Taxation, specific boxes will be provided on the SA100 and the following self-employment pages.
Grants should not be reported within your tax return for the tax year 2019/20 and the fourth and fifth grants are taxable in the tax year 2021/22 and should be reported on your 2021/22 self-assessment return in due course.
A useful link to the Chartered Institute of Taxations post on SEISS can be found here.
SEISS grant eligibility
Much of the eligibility criteria remains unchanged from the third grant, with notable exceptions that an individual must:
have submitted their 2019-20 tax return by 2 March 2021
have trading profits that are at least nil (not a trading loss), based on their 2019-20 tax return, or an average of tax years 2016-17, 2017-18, 2018-19 and 2019-20
have trading profits that are no more than £50,000 and at least equal to their non-trading income, based on their 2019-20 tax return, or an average of tax years 2016-17, 2017-18, 2018-19 and 2019-20
have been trading in the tax years 2019-20 and 2020-21.
For any further information, please call us on 01784 390021 / 07481 479933 or email us at Sales@shortandsons.co.uk.