Fourth and fifth SEISS grants and your tax return
Self-Employment Income Support Scheme (SEISS) grants were paid to many self-employed individuals and partners in partnerships during the coronavirus pandemic. These grants need to be included on your tax return as they are subject to income tax and self-employed National Insurance contributions.
SEISS grants were first paid out in May 2020 to those who claimed them. In total, the government offered five SEISS grants.During the 2021/22 tax year, two lots of SEISS payments (the fourth and fifth SEISS grants) were made to eligible sole-traders and partnerships. Businesses which started trading during the 2019/20 tax year were able to claim SEISS grants for the first time in 2021/22.
The grants are treated as taxable income in the tax year in which they were received. So, for all individuals and most partners in partnerships, the fourth and fifth SEISS grants must be included in the correct box on the 2021/22 tax returns.
Our updated guidance explains where these SEISS grants need to be declared on your Self-Assessment tax returns. The guidance also covers other areas you may need to consider, such as:
- where to put SEISS grants on your tax return if you have multiple trades
- how SEISS grants can affect your tax return if you claim the trading allowance
- SEISS grants and your tax return if you are a partner in a partnership
- how SEISS grants are treated if you claim tax credits.