I am Chantal Baker, Director and founder of Champ Consultants. We are accountants and tax consultants based in Caterham. We are looking forward to providing you with business and finance tips as well as answering your questions.
Question:
Do I need to pay tax on the Self Employment Income Support Scheme Grant?
Answer:
If you have received your money regarding the Self Employment Income Support Scheme (SEISS) Grant, there are a few things you need to bear in mind.
1. The money is treated as your income.
2. If you are VAT registered there is no VAT on this money.
3. If you are not VAT registered, this money does not form part of your taxable income in calculating whether you need to be VAT registered or not.
4. The money received is a grant and does not need to be repaid to HMRC.
5. Income tax and Class 4 National Insurance will need to be paid on this income and it will form part of your profits.
6. This money will form part of your self employment profits and your tax rate may be affected by the money received.
7. If the addition on this money causes your total taxable income to be over £50,000 and you receive child benefit, you may need to repay back your child benefit.
8. f you have previously claimed the transfer of personal allowance through marriage, and if this income should mean you become a higher rate tax payer, you will no longer be able to claim the transfer of personal allowance.
If you are self employed and have also received a grant from your local council, the above points also apply to this money as well.
Happy to receive your questions for future answers in The Caterham & District Independent Newspaper. You can email your questions to:
info@champconsultants.co.uk or newsdesk@caterhamindependent.com
