This time of year can be stressful, as the 31 January deadline for submitting self assessment tax returns approaches. It’s easy for unusual items to get overlooked, and HMRC wants to remind businesses and individuals that Covid support grants are taxable and that anyone who received one should declare it on their tax return. Accountants and tax agents should also ensure their clients haven’t forgotten to include the grants as income in any calculations.
Taxable grants include:
- Test and tract, or self-isolation payments
- Coronavirus statutory sick pay rebates
- Coronavirus business support grants
- Coronavirus job retention scheme grants
- Eat out to help out payments
For detailed information about which support payments to report, visit this page on the HMRC website.
HMRC has also announced that it is waiving penalties for late filing of tax returns and late payments for one month, although it will still charge interest on outstanding balances. For more information, read the full announcement. It’s also important to remember that not everyone will be working towards 31 January to submit their return – company tax returns are due 12 months after the end of the company’s accounting period, so the deadline for your business might be different.
If you’ve already submitted your tax return, but haven’t included the correct information, there’s no need to panic. There is detailed advice and information on the HMRC website about what to do.
Completing your tax return can be complex at the best of times, and this year even more so. Our advice is to get started as soon as possible and not to leave it to the last minute. That way, HMRC has time to answer any questions that arise, and minimise the stress involved.