Reporting Covid Support Payments
12 August 2021
New guidance released by HMRC on 6 August 2021 confirms that all grants and payments from schemes to support businesses and self-employed individuals during coronavirus (COVID-19) are taxable. To clarify how the payments should be reported, HMRC has released a new guidance document. The key points are;
- Those who are self-employed, in a partnership or a business may need to report Covid-19 payments on their tax return.
- This includes grants and payments from Covid support schemes, these are grants or payments made by local authorities or devolved administrations.
- The guidance contains a full list of grants that must be reported.
- All taxable COVID-19 payments should be reported in the any other business income box with the exception of the Self Employment Income Support Scheme payments which should be placed in the Self Employment Income Support Scheme Grant box on a Self-Assessment form.
Aspire Comment:
It is essential that all payments from Covid support grants and schemes are reported correctly as this is likely to be scrutinised by HMRC in future. Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.