Reporting SEISS grants on your Self-Assessment tax return

11.06.2021
Natalie Moon
Tax, COVID-19

The SEISS grants are subject to income tax and National Insurance contributions therefore, Self-Employed taxpayers who have received SEISS payments from HMRC will need to report these on their self-assessment tax returns.

The first, second and third grants need to be included on the Self-Assessment 2020-21 tax return which is due to be submitted by 31 January 2022.

The fourth and fifth grants need to be included on the 2021/22 tax return which will be due for submission by 31 January 2023.

HMRC hold a record of all taxpayers in Self-Assessment who have made claims together with the amounts claimed. They will be checking that the grants have been correctly reported on the tax returns and that they were eligible to make the claims.

HMRC have confirmed that all tax returns submitted which include SEISS grants will be processed manually. This may mean a delay if you are expecting a refund.

For the 2020/21 tax return, the following boxes should be used to report the grants claimed:

  • Box 70.1 in the Self-Employment (Full) pages
  • Box 27.1 on the Self-Assessment (Short) pages
  • Box 9.1 of the partnership (Full) pages

If you received grant payments as a partner, please either consult the partnership tax return guide or speak to us for further guidance.

Paying back overpaid grants

You must tell HMRC if, when you made the claim, you were not eligible for the grant. The conditions which needed to be met to be eligible for each grant were different. Some examples of circumstances where you may not have been eligible are:

  • For the first and second grant, your business was not adversely affected.
  • For the third or fourth grant, your business had not been impacted by reduced activity, capacity, or demand or unable to trade in the relevant periods.
  • You did not intend to trade.
  • You incorporated your business.

In addition, you must also tell HMRC if:

  • You received more than you were entitled to.
  • In respect of the fourth grant, if you amend your tax return after 31 March 2021 in a way which affects your eligibility or the amount you were entitled to receive.

If you would like any assistance with checking that you were eligible, please contact us.

If you have been overpaid, in most cases, you should tell HMRC within 90 days of receiving the grant. You can do this at any time by completing an online form or on your self-assessment tax return. 

HMRC may charge penalties for overpaid grants reported after 90 days however any penalties charged may be reduced where a reasonable excuse is provided. 

For more information or to speak to an adviser

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