Newslink January 2022

News
Last reminder: January 31
deadline is approaching
The HMRC self-assessment ritual is on
us again, and self-employed ADI are
reminded that they have to get their tax
affairs sorted by January 31.
It’s a familiar task we’ve all done many
times before, but it’s more challenging
this year because of the various income
support schemes and bounceback loans
ADIs may have received during pandemic
lockdowns and other disruptions, from
April 2020-March 2021.
Most ADIs will have received help from
the Self-Employed Income Support
Scheme (SEISS). This grant is classed as
income and is therefore taxable. It must
be declared on your self-assessment. All
SEISS grants you received on or before 5‌‌
‌April 2021 need to be included in this
Self Assessment tax return. For most
people, this will be the first, second and
third SEISS grants.
Grants you received on or after 6‌‌ ‌April
2021 will be included in the 2021-22
Self Assessment tax return, to be
submitted by 31‌‌ ‌January 2023. For
most people, this will be the fourth and
fifth SEISS grants only.
It will also be more difficult adjusting
expense claims to match activity during
this period, though remember that if you
run your driving school from your home
Illustration by Amy Beswick
you can claim a percentage of household
expenses to off-set against tax.
Self-assessment can often be a
challenging time for instructors and
particularly at the moment as many of
you are so busy teaching, and settling
down to some admin might not sound
too appealing. That’s why we’d
recommend using an expert in tax affairs,
such as FBTC or Capital Accounting (see
advertisement).
For advice from the GOV.UK
website, click here.
Confusion over SEISS is taxing the self-employed
COVID-19 support schemes
You must declare if you received any
grants or payments from COVID-19
support schemes up to ‌‌April 5 2021, as
these are taxable. This includes:
• Self-Employment Income Support
Scheme (SEISS)
• Coronavirus Job Retention Scheme
(CJRS)
• other COVID-19 grants and support
payments such as self-isolation
payments and local authority grants.
Go to GOV‌‌.UK and search ‘reporting
coronavirus grants’ to find out which
COVID-19 grant or support payments to
include if you’re self-employed, in a
partnership or a business.
To find out which SEISS grants you
claimed, how much you received, and
when, search ‘return to your claim’ on
GOV‌‌.UK and press the green ‘Start now’
button. You will be able to see details of
all your SEISS grants.
Remember too that other coronavirus
support payments are taxable, as are
most payments from local authorities
and Scottish and Welsh Governments.
Don’t believe the rumours: HMRC is ready to help
While the taxman doesn’t have the
best reputation when it comes to being
sympathetic towards people who don’t
follow its rules, in reality HMRC
officials are ready to help wherever
possible.
A spokesperson for the HMRC said:
“We know that the past two years
have been incredibly challenging for
many ADIs. Income levels and tax
rules have changed dramatically and
this could cause a lot of confusion
when it comes to filling in selfassessment
returns this time.
“In addition, we know people’s
incomes have been hit hard, which
has placed pressure on finances.
“If you are struggling to pay your tax
bill, speak to us in the first instance.
We may be able to help by arranging
an affordable payment plan. If you
owe less than £30,000, you may be
able to do this online without speaking
to us.”
For advice from the GOV.UK
website, click here.
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NEWSLINK n JANUARY 2022