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.

Harrogate: 01423 524322 - mail@howardmatthews.co.uk :: Leeds: 0113 2862663 - darren@howardmatthews.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.

Xero - Certified Advisor Sage logo
About us

Established in 1985 we moved from Wetherby to Harrogate in 1995. Howard Matthews Partnership is now one of the leading firms in Harrogate and is highly respected in the business community.

Learn more

Latest news
Contact Details

Please call:
01423 524322

Howard Matthews Partnership, Queensgate House, 23 North Park Road, Harrogate, North Yorkshire HG1 5PD

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2020 Howard Matthews Partnership. All rights reserved. powered by totalSOLUTION
Harrogate Office : Howard Matthews Partnership, Queensgate House, 23 North Park Road, Harrogate, North Yorkshire HG1 5PD
Leeds Office : Howard Matthews Partnership, Lidgett House, 56 Lidgett Lane, Garforth, Leeds LS25 1LL

We use cookies on this website, you can find more information about cookies here.
ICAEW - The Institute of Chartered Accountants in England & Wales CIOT - Chartered Tax Advisors