Are Coronavirus (Covid-19) grants taxable for self employed and partners in business?

Find out if you need to include a COVID-19 grant or support payment on your tax return if you are self-employed or a partner in a business.

HMRC published guidance on 6th August 2021 confirming Grants and payments from schemes to support businesses and self-employed individuals during coronavirus (COVID-19) are taxable.

Who should report a grant or support payment

If you received a payment to support you during COVID-19, you may need to report this on your tax return if you are:

  • self-employed
  • in a partnership
  • a business

Which payments you need to report

You need to report grants and payments from COVID-19 support schemes. These include:

  • the Self Employment Income Support Scheme (SEISS)
  • test and trace or self-isolation payments
  • the Coronavirus Job Retention Scheme (CJRS)
  • Eat Out to Help Out
  • Coronavirus Statutory Sick Pay Rebate
  • Coronavirus Business Support Grants

Coronavirus Business Support Grants

These are grants or payments made by one of the following:

  • local authorities
  • devolved administrations

They are also known as local authority grants or business rate grants.

Examples of these grants in England include:

  • Small Business Grant Fund
  • Retail, Hospitality and Leisure Grant Fund
  • Local Authority Discretionary Grant Fund
  • Fisheries Response Fund

Examples of these grants in Wales include:

  • Welsh Government Business Grants (Grants 1 & 2)
  • Economic Resilience Fund

Examples of these grants in Scotland include:

  • Business Support Fund
  • Newly Self-Employed Hardship Fund
  • Creative, Tourism & Hospitality Enterprises Hardship Fund
  • Pivotal Enterprise Resilience Fund
  • Aquaculture Hardship Fund
  • Sea Fisheries Hardship Fund

Examples of these grants in Northern Ireland include:

  • Small Business Support Grant Scheme
  • Retail, Hospitality, Tourism and Leisure Grant
  • other coronavirus emergency and hardship funds

If you have received a Coronavirus Business Support Grant, it is taxable.

 

If you want to discuss this further please Contact Us

 

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