Individuals tax returns submitted with SEISS grants are being auto corrected by HMRC.
What is the SEISS grant?
The Self Employment Income Support Scheme was introduced during the pandemic in order to support those self employed who were unable to continue trading during the pandemic.
However, the grants are treated as income when received and therefore need to be included on your tax return for the year ending 5 April 2021.
What are HMRC doing?
HMRC's computerised system can auto correct tax returns where they find clear and obvious errors. If HMRC holds records on their system which do not match those declared by individuals the tax return will be changed and the individual will be notified.
HMRC have 9 months from the date of filing the return to make this change.
What do I need to do?
If you are preparing your tax return yourself it is important to separate the grant income received from the normal trading income (if any) received during the year.
On HMRC's system they have a separate section on which to declare this grant income.
If you have already submitted your tax return and HMRC have auto corrected it, fortunately the auto correction can be challenged. If you need help challenging the return get in touch to find out how we can help?
KALA ATKINSON ARE A FIRM OF CHARTERED ACCOUNTANTS BASED IN EAST LONDON.
We have over 30 years experience in helping individuals and small businesses navigate their compliance whilst providing the business advice and the necessary financial tools to grow.
For more information on how we can help you file your tax return contact us today.