HMRC is reminding self assessment customers to declare any Covid-19 grant payments on their 2020/21 tax return, including SEISS claims which are taxable
More than 2.7 million customers claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2021. These grants are taxable and taxpayers must declare them on their 2020/21 tax return before the deadline on 31 January 2022.
The SEISS application and payment windows during the 2020/21 tax year were:
- SEISS 1: 13 May 2020 to 13 July 2020
- SEISS 2: 17 August 2020 to 19 October 2020
- SEISS 3: 29 November 2020 to 29 January 2021
If taxpayers received other support payments during the pandemic, including Coronavirus Job Retention Scheme (CJRS) grants, they may need to report this on their tax return if they are self-employed; in a partnership; or a business.
Information on which support payments need to be reported to HMRC and any that do not is available on the gov.uk website.
It is important that taxpayers check and make any changes to their tax return to make sure any SEISS or other Covid-19 support payments have been reported correctly in their self assessment.
Myrtle Lloyd, HMRC’s director general for customer services, said: ‘We want to help customers get their tax returns right, first time. We have videos, guidance and helpsheets available online to support you with your self assessment. Search ‘help with self assessment’ on gov.uk to find out more.’
HMRC has created resources to help taxpayers complete their tax return including a playlist on YouTube, webinars, and helpsheets and guidance available on gov.uk.
HMRC recently announced that more than 20,000 customers, who were unable to pay their tax bill in full, had used the self-serve time to pay facility, bringing in an estimated £46m. The online payment plan helps taxpayers who may feel worried or anxious about paying any tax owed by enabling them to spread the amount into manageable monthly instalments, up to the value of £30,000.
If taxpayers owe more than £30,000, or need longer to pay, they should call the self assessment payment helpline on 0300 200 3822.
HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. Taxpayers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their self assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search gov.uk for ‘HMRC scams’.
Taxpayers that were employed and received CJRS (furlough) payments during the 2020/21 tax year will need to enter earnings and income tax as stated on their P60. The P60 will include any furlough payments received up to 5 April 2021, so these furlough payments do not need to be included on tax returns.
HMRC is reminding taxpayers to check that they have the correct information in order to complete their paper self assessment tax returns by the month end deadline
The deadline for 2020/21 paper tax returns is 31 October 2021 for those completed on paper forms and 31 January 2022 for online returns.
While the end of January is more than three months away, HMRC has already seen thousands of people filing their returns – more than 63,500 customers filed their tax return on 6 April, the first day of the tax year. Taxpayers can file before the January deadline but still have until 31 January to pay.
Any customer who is new to self assessment must register via gov.uk to receive their Unique Taxpayer Reference (UTR). Self-employed individuals must also register for Class 2 National Insurance.
HMRC is encouraging taxpayers to register early so that they can access guidance and be aware of what they need to do. This includes record keeping, knowing when the filing and payment deadlines are, and the potential for a first tax payment to include a payment on account.
This year, taxpayers will also have to declare if they received any grants or payments from Covid-19 support schemes up to 5 April 2021 as these are taxable, including:
• Self-Employment Income Support Scheme (SEISS);
• Coronavirus Job Retention Scheme (CJRS); and
• other Covid-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme.
If you are employed and received CJRS (furlough) payments during the 2020-21 tax year, you will need to enter your earnings and income tax as stated on your P60. Your P60 will include any furlough payments you received up to 5 April 2021, so you do not need to include furlough payments on your tax return.
If you are self-employed or in a partnership and received any coronavirus financial support, you will need to declare it on your self assessment.
If you are self-employed, you should use:
- form SA103S – short if your tax affairs are simple and your turnover was below the VAT threshold (£85,000) for the tax year; or
- form SA103F – full if your annual turnover was above the VAT threshold for the tax year.
If you’re in a partnership, you should use:
- form SA104S – short if you’re only declaring partnership trading income; or
- form SA104F – full to record all the possible types of partnership income you might receive
HMRC recognises that some taxpayers may be worrying about paying their tax bill. They can access support to help pay any tax owed, and may be able to set up their own monthly payment plan online by using HMRC’s self-serve Time to Pay facility. Taxpayers should contact HMRC for help if they have concerns about paying their bill.
HMRC’s Myrtle Lloyd, director general for customer services, said: ‘We want to help people get their tax returns right by making sure they are prepared and have everything they need before they start their self assessment. If anyone is worried about paying their tax bill, support is available – search ‘time to pay’ on gov.uk.’
The fastest way to complete a tax return is online via a taxpayer’s Personal Tax Account. They will need their UTR to access their tax return, as well as details of their income or earnings and other financial records.
HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search gov.uk for ‘HMRC scams’.
In our handy guide to tax filing deadlines, we provide an at-a-glance guide to key dates from the deadline for notifying chargeability for income tax and capital gains tax to final claims for coronavirus job retention scheme
Corporation tax payment for companies with 31 December 2020 year end (where payments not required by quarterly instalments)
Notify chargeability for income tax/capital gains tax for 2020/21 if not registered for self-assessment
Corporation tax second quarterly instalment payment for accounting periods ending 31 December 2021
Deadline to claim for Coronavirus Job Retention Scheme (CJRS) for September 2021 claims
PAYE cheque payments for the month ended 5 October should reach HMRC by this date (22 October for electronic payments)
File online Construction industry scheme return for the month ended 5 October
Paper submission of personal tax returns for 2020/21 if HMRC is to calculate liability (unless notice issued by HMRC after 31 July 2021, in which case deadline is three months after date of issue of notice)
Forms P46(Car) for quarter ended 5 October (where benefits not payrolled) to reach HMRC by this date
Employment intermediary’s quarterly report (6 July to 5 October) of agency workers paid gross (end user organisation can be classed as the employment intermediary in some circumstances)
PAYE cheque payments for the month ended 5 November should reach HMRC by this date (22 November for electronic payments)
File online Construction industry scheme return for the month ended 5 November
Corporation tax third quarterly instalment payment for very large companies with annual taxable profits exceeding £20m (reduced if company is a member of one or more 51% groups) with an accounting period beginning on 1 April 2021
PAYE cheque payments for the month ended 5 December should reach HMRC by this date (22 December for electronic payments)
File online Construction industry scheme return for the month ended 5 December
Deadline for online submission of personal tax returns for 2020/21 where the taxpayer wishes to settle outstanding underpayments of tax of less than £3,000 as deductions through the PAYE system
Deadline for filing corporation tax returns for accounting periods ended 31 December 2020