Many people who are employed have their tax and National Insurance contributions automatically deducted from their wages. However, a number of self-employed people will be preparing to, or have already sent off, their Self Assessment tax returns in light of the January 31, 2021 deadline.
The 2019/2020 tax year ended on April 5, 2020, and this year the deadline to submit the Self Assessment tax return falls on a Sunday.
The deadline to register for Self Assessment tax returns was October 5, 2020.
People who have registered should have received a letter with their Unique Taxpayer Reference code.
They should also have been set-up with a self-assessment online account by HMRC.
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Self-employment: What should SEISS claimants know about the January tax deadline? (Image: GETTY)
Self-employment: The 2019/2020 tax year ended on April 5, 2020 (Image: GETTY)
The Self-Employment Income Support Scheme grants do not need to be repaid if someone is eligible to claim them.
However the grants are taxable, and are therefore subject to deductions such as income tax and self-employed National Insurance.
The SEISS grants must therefore be declared on 2020/2021 Self Assessment tax returns.
Self-employment: People who miss the deadline to submit their tax return to HMRC may incur a penalty (Image: GETTY)
Self-employment: The tax return deadline is January 31, 2021 (Image: GETTY)
Grace Taylor MAAT, Accounts Senior at The Accountancy Partnership, explained to Express.co.uk: “The Self Employed Income Support Scheme is taxable, meaning it is subject to income tax and National Insurance.
“The amount of grant that you received will be included in your tax calculation, so you
