SEISS tax bills

SEISS claimants ‘could face significant tax bills’ Self-employed grant claimants may have to consider income tax bills for Self-Employment Income Support Scheme (SEISS) payments, with the government currently working on draft legislation which could see new rules on taxing coronavirus business support grants introduced. Victoria Todd, head of the Low Incomes Tax Reform Group (LITRG), remarked: “Many claimants of SEISS grants might, understandably, use the money as soon as they get it, for example, to catch up on liabilities or to meet essential living costs – but they need to think now about budgeting for income tax and National Insurance on it.” She went on: “We urge HMRC to do as much as they can to publicise that the grants are chargeable to income tax and National Insurance, to reduce the risk of people being surprised by higher-than-expected 2020/21 tax bills.”