LITRG warns self-employed that SEISS is taxable

The Low Incomes Tax Reform Group (LITRG) has warned self-employed individuals that the government's coronavirus (COVID-19) Self-employment Income Support Scheme (SEISS) is taxable.

Call 01908 233700 or email sarah@reid-co.co.uk

The Low Incomes Tax Reform Group (LITRG) has warned self-employed individuals that the government's coronavirus (COVID-19) Self-employment Income Support Scheme (SEISS) is taxable.

The group is concerned that many may wrongly assume that the SEISS funds are exempt from tax, particularly as they are termed 'grants' by the government. It is warning that many people may have to pay a third of the grant back in tax and Class 4 national insurance contributions (NICs).

The LITRG said that grants made to the self-employed via the SEISS are likely to be included in claimants' 2020/21 self assessment tax returns.

Commenting on the issue, Victoria Todd, Head of the LITRG, said: 'Many claimants of the 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.'

More information on the SEISS can be found here.

About our team

Reid & Co. was established in 1981 and today, we continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike ...

Learn more

Latest news
Contact Details

Please call:
01908 233700

Reid & Co Corporate Services Limited, Artemis House, 4a Bramley Road, Mount Farm, Milton Keynes, Buckinghamshire MK1 1PT

Home | Attribution | Contact us | Site map | Accessibility | Disclaimer | Privacy Policy | Help |
powered by totalSOLUTION

© 2020 Reid & Co. All rights reserved. Registered number: 02300857.

We use cookies on this website, you can find more information about cookies here.
cyber-essentials-logo.png