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Double tax risk for SEISS claimants, warns LITRG

Taxpayers need to ensure they allocate their self employment income support scheme (SEISS) payments in the correct box on self assessment tax returns to avoid double taxation

The Low Incomes Tax Reform Group (LITRG) is warning of a potentially easy-to-make mistake that can see taxpayers take a double tax hit.

The first three SEISS grants should have been included on the 2020/21 tax returns. But the fourth and fifth SEISS grants must be declared on 2021/22 tax returns which many self-employed individuals and partners in partnerships will complete in the months ahead.

The fourth and fifth grants were the first SEISS grants made available for eligible self-employed and partners in partnerships who began trading during the 2019/20 tax year. 

SEISS grants are subject to both income tax and self-employed National Insurance contributions. 

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