A chunk of time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic.
The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second grant of up to a total of £6,570 and a third grant, worth up to £7,500 in total.
Many self-employed individuals or business partners who met the SEISS’s eligibility criteria could have claimed up to £21,570 in total from these grants claimed during 2020/21.
What’s that got to do with your next personal tax return, you might wonder? Quite a lot, actually, as any of the three emergency support grants you received via the SEISS between 6 April 2020 and 5 April 2021 are taxable.
The time will shortly be upon us to report all of your taxable income from the 2020/21 tax year, prior to the next self-assessment deadline for online tax returns due on or before midnight on 31 January 2022.
For many self-employed individuals, a large portion of their taxable income for 2020/21 will have come via the SEISS grants, because many businesses were forced to close due to lockdown restrictions, or simply struggled to do business.