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Jun 10, 2022

Risk of double taxation for SEISS claimants

The Low Incomes Tax Reform Group (LITRG) is warning of easy mistakes that could see taxpayers paying double in tax when reporting SEISS payments.

Taxpayers need to be sure to allocate their SEISS payments in the correct boxes on their self-assessment tax returns to avoid double taxation.

The first three SEISS payments should have been included in 2020/21 tax returns, but the fourth and fifth must be declared on 2021/22 returns in a few months' time.

The fourth and fifth SEISS payments should be included in box 27.1 on the SA103S self-assessment supplementary pages and box 70.1 on SA103F self-assessment supplementary pages.

If the SEISS grants go in the wrong box, HMRC will amend the calculation, which could lead to it being counted twice and subsequently double taxed.

Claire Thackaberry, technical officer at LITRG, said:

"We want to raise awareness of this potential pitfall well ahead of the tax return deadline of October for paper tax forms and January for online tax returns.

"Some sole traders and partners are aware that these grants need to be included in the appropriate box on their tax return because they claimed at least one of the first three grants which were taxable in 2020/21."

Talk to us about accounting for SEISS payments in your tax return.