Iain Rankin explains the rules on self-employed income support scheme grants, how they are taxed and why they are still causing a degree of confusion among some taxpayers and agents.
Following its launch in March 2020 as part of the UK government’s response to the Covid-19 pandemic, the self-employed income support scheme (SEISS) has proved a huge success. In total, almost 10 million claims have been made, with a total value of £27 billion.
Taxation of the SEISS grants
SEISS income is a revenue receipt in nature, to be brought into account in calculating the profits of the business to which they relate for income tax and Class 4 National Insurance contributions.
Self-employed taxpayers who have received the first, second and third grant payments from HMRC will need to report these on