Tax warning to the Self Employed…
A report this week from the Low Income Tax Reform Group (LITRG) raised concerns that many Self Employed may be facing unexpected tax bills. The group is concerned that those who benefitted from the Coronavirus Self Employed Income Support Scheme (SEISS) aren’t aware that the amounts received are taxable.
The scheme allows the Self Employed, whose businesses have been adversely affected by Coronavirus, to claim two amounts from the Government, with the second becoming available in August.
Victoria Todd, head of LITRG, said: ‘Many claimants of SEISS grants might, understandably, use the money as soon as they get it, for example, to catch up on liabilities or to meet essential living costs – but they need to think now about budgeting for income tax and National Insurance on it.’
We have made it clear to clients who have claimed the these amounts are taxable. If you have benefited from the scheme, or hope to do so in the second wave, please ensure that you take account of the fact too!
You’ll need to ensure that you include the grant in your tax return for the year, and have funds available to make your payments on account as they become due.
If you’re unsure whether you qualify for the scheme, or want to take about any tax related matters, please get in touch.