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