HMRC warning: Don’t forget to declare COVID-19 grants on your tax return | Personal Finance | Finance
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The warning from HM Revenues and Customs (HMRC) comes as figures show more than 2.7 million customers claimed at least one Self-Employment Income Support Scheme (SEISS) payment in 2021. As these grants are taxable, failure to declare them on their tax return could land Britons in trouble.
SEISS payments were made to help Britons during the pandemic and how much someone received depended on their profits.
The first grant worked out at 80 percent of an individual’s average monthly income and was paid in May or June 2020.
A second grant was made available for self-employed individuals whose businesses were adversely affected by the pandemic on or after July 14, 2020.
If anyone received the third grant, that would also need to be declared as it was paid to affected Britons between November and January 2021.
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Meanwhile, more than 20,000 customers, who have been unable to pay their tax bill in full this year have taken advantage of the self-serve time to pay facility.
The online payment plan helps customers who may feel worried or anxious about paying any tax owed by enabling them to spread the amount to make them more manageable.
If customers owe more than £30,000 or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
HMRC has created resources to help customers complete their tax return which are available on GOV.UK.
For anyone who is completing their Self Assessment tax return, the SEISS application and payment windows during the 2020/21 tax year were:
SEISS 1: May 13, 2020 to July 13, 2020
SEISS 2: August 17, 2020 to October 19, 2020
SEISS 3: November 29, 2020 to January 29, 2021
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