Have you reported SEISS payments in self assessment tax return?
HMRC has published new guidance which explains when you might need to change your self-assessment tax return if you have claimed Self-Employment Income Support Scheme (SEISS) payments.
HMRC’s notice published on 2 July advises anyone who has claimed and received one or more coronavirus support payments under the Self-Employment Income Support Scheme (SEISS) to check their 2020/21 tax returns.
The notice is part of HMRC’s clampdown on incorrect and false claims; it’s currently investigating around 12,000 such cases. However, the latest guidance is to ensure that the correct tax is paid on genuine claims.
The new guidance follows HMRC’s discovery that many of the self-assessment tax returns submitted for 2020/21 include entries which don’t match the figures it already has on record. Either SEISS payments haven’t been reported at all or the figures differ from those HMRC has on record.
What to report
Payments from the first, second or third SEISS grants (received on or before 5 April 2021) should be included on your 2020/21 return in the “Self-Employment Income Support Scheme grant” box. If you haven’t yet submitted your tax return remember this.
If you have submitted your 2020/21 return, check you’ve reported the SEISS payments in the right box. If you put them in the wrong place, you must send an amendment to your tax return otherwise HMRC will assume you haven’t reported the payments and will automatically amend your return. This will result in you being taxed twice on the same income.
HMRC will also automatically amend your tax return if the amount of SEISS payments you reported doesn’t match its records. It will send you a revised tax calculation which you should check. HMRC explains how to do this in its latest guidance. It also explains what to do if you don’t agree with the amendment made by HMRC. Make sure you entered any SEISS payments in the right place. If you haven’t you must amend your tax return to show them correctly or there is possibility that you will be taxed twice.