Tax news in brief Highlights from the broader tax news week ending 27 January, which includes: Treasury confirms that eligibility criteria for fourth SEISS grant will be announced at the Spring Budget; special edition of HMRC s Employers Bulletin focuses on Brexit transition and HMRC updates its guidance on scams.
Eligibility criteria for next SEISS grant to be in Budget
HM Treasury has confirmed that information about the amount of, and eligibility criteria for, the fourth Self-employment Income Support (SEISS) grant will be provided at the Spring Budget on 3 March 2020. The fourth SEISS grant covers February to April 2020. It is not clear how soon after the Budget HMRC will be able to open applications for the fourth grant, or whether this delay will mean that information from 2019/20 returns will be taken into account when calculating the grants.
| UPDATED: 16:44, Fri, Jan 22, 2021
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According to HMRC, some 11 million people complete a Self Assessment tax return every year. Although the tax return deadline is January 31, 2021, people have the option of submitting their tax returns earlier than this. But for those who have yet to submit their tax returns, Express.co.uk spoke to self-employment experts to get their tips on this January’s tax deadline.
Self-employment: The 2019/2020 tax year ended on April 5, 2020 (Image: GETTY)
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Is the SEISS grant classed as taxable?
The Self-Employment Income Support Scheme grants do not need to be repaid if someone is eligible to claim them.
However the grants are taxable, and are therefore subject to deductions such as income tax and self-employed National Insurance.
The SEISS grants must therefore be declared on 2020/2021 Self Assessment tax returns.
Self-employment: People who miss the deadline to submit their tax return to HMRC may incur a penalty (Image: GETTY)
Self-employment: The tax return deadline is January 31, 2021 (Image: GETTY)
Grace Taylor MAAT, Accounts Senior at The Accountancy Partnership, explained to Express.co.uk: “The Self Employed Income Support Scheme is taxable, meaning it is subject to income tax and National Insurance.
HMRC’s customer service levels have deteriorated with the average wait time for its customer helpline jumping 31% to 12:45 minutes in November 2020, up