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The devil in the detail
Key points
- Some surprises in the taxation of first and second round SEISS grants.
- Except for some partnerships FA 2020 Sch 16 explains that grants are taxed in 2020-21.
- Tax returns may be pre-populated but check amounts.
- For partners the partnership agreement will determine the tax treatment.
- A change of intention on whether to continue trading should not mean the grant must be repaid.
- The effect on future payments on account.
- Consider the effect on tax credit and universal credit claims.
Since it was first announced on 26 March 2020 as part of the government’s package of Covid-19 relief measures the self-employed income support scheme (SEISS) has proved to be very popular. As at 18 October more than 4.9 million claims had been made with a total value of £13.5bn.
While these grants have provided welcome relief to many of those receiving them the...
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