The Self-Employment Income Support Scheme (SEISS) has acted as a lifeline for many business owners during the coronavirus pandemic. Chancellor Rishi Sunak announced last year the scheme will be extended until April 2021, which will come as a relief to many businesses trying to navigate the next stage of lockdown.
Will applications open in February for self-employed grant 4?
Applications are still currently open for the third SEISS grant, which covers November to January.
Applications for the third SEISS grant must be made on or before January 29, 2021 in order to get the grant.
When applications close for the third grant, it is likely the fourth grant applications will soon follow.
How does SEISS affect the Self Assessment tax return deadline?
The Self Assessment tax return deadline is midnight on Sunday, January 31, 2021.
Grace Taylor MAAT, Accounts Senior at The Accountancy Partnership said: “The Self-Employment Income Support Scheme is taxable, meaning it is subject to income tax and National Insurance.
“The amount of grant that you received will be included in your tax calculation, so you must show it on your Self Assessment tax return.
“Although SEISS is received in a single payment, the first grant is in respect of the months March, April and May 2020, covering two tax years.
“Any money you receive through SEISS should be included in the tax return which covers the year you received the grant.
“This means that you will need to include it in your 2020/2021 tax return.
“The amount of tax and National Insurance you have to pay on your income depends on how much you earn.
“This is because of the way that different income thresholds and tax allowances affect the way your bill is calculated.”