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Taxation of Self employed Grant

When is the grant taxed? - basis period

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How and when is the grant taxed? The finance Bill 2020 indicates that the grant is subject to tax and national insurance and should be taxed in 20/21 and not in 19/20. Is the grant taxed as a stand alone income receipt or included within the business accounts for the year. If the latter then how does this work with basis periods? A 5 April year end will be straightforward, but what about 30 April 20 year end - the receipt of the grant would fall to be taxable in the following year, although an element would presumably have been acrued in the April 20 year?

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By John Stone
01st Oct 2020 16:29

The general view is that there will be a separate box on the 2020/21 tax return for the SEISS (as opposed to an inclusion in the business accounts)

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RLI
By lionofludesch
01st Oct 2020 18:30

Never was the comment "Your question may have already been asked" more appropriate.

What's absolutely clear is that it will be taxed in 2020/21 as HMRC have specifically said so.

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By SXGuy
01st Oct 2020 18:43

I think this might be the 2nd, 3rd,4th or even 5th question that's been asked about basis periods, and my answer to the first was, if you know its taxable in 20/21 then that is the tax return it goes in, regardless of the basis period.

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Replying to SXGuy:
RLI
By lionofludesch
01st Oct 2020 18:52

It's at least 4.

At least.

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