Self Assessment Taxpayers Reminded to Include Covid Grants in Their Returns
HMRC has issued a reminder to self assessment taxpayers that they must include details of any Covid-19 support grants they received in their returns for the year 2020/21.
There were an estimated 2.7 million instances of grants being provided to individuals via the Self Employment Income Support Scheme (SEISS) during the most recent tax year and the Revenue is now emphasising that the associated funds should be declared within tax returns.
With the tax return deadline for the year 2020/21 fast approaching at the end of January 2022, HMRC has said it hopes to see as many people as possible getting their returns right at the first attempt.
To that end, HMRC has emphasised that various other government-backed Covid support schemes besides the SEISS should also be referenced in self assessment tax returns if they were also accessed by any individual during the most recent tax year.
Those other schemes should be referenced in self assessment returns if someone received money through them as a self employed professional or if they were in a partnership or involved in the running of a business during 2020/21.
A designated guidance page has been setup on official government websites to outline precisely which Covid-related financial support schemes need to be referenced in self assessment returns and which do not.
“We want to help customers get their tax returns right, first time,” explained Myrtle Lloyd, HMRC’s director general for customer services.
“We have videos, guidance and help sheets available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”
Elsewhere, HMRC has been encouraging businesses to prepare themselves for changes to customs procedures from January 2022.
The changes will see the removal of some temporary customs and VAT easements introduced at the beginning of 2021 in relation to the movement of goods between Great Britain and the EU.
It is intended that the revised rules will impact “everyone who trades with Europe, no matter the type or value of the goods they buy or sell, how frequently they trade or how their goods are transported”.
HMRC’s directors general for borders and trade, Katherine Green and Sophie Dean, said in a joint statement: “We urge people to act now on this - for those who need more support and guidance, HMRC is here to help.”