The latest guidance from HMRC on the Self Employment Income Support Scheme payments states that some taxpayer may have been taxed twice. 

Here are the steps to prevent this

It has been said by HMRC that many of the self assessments that have been submitted include entries for SEISS payments which do not match the figures on record or the return shows nothing at all. Therefore it is automatically adjusting these returns and sending out the corrected tax calculations.

Firstly you should check that the adjusted figure that HMRC has sent out only reflects the total of the first, second, third SEISS grants you received on or before 5th April 2021. You also need too ensure that you have reported the SEISS payment in the correct box on your return.

It is important to make sure that you puut the figures in the correct place on your tax return because if it’s in the wrong place HMRC will assume you haven’t declared the payment at all. This will then automatically add them which will mean that you are being taxed twice on the SEISS payment. Therefore to avoid being taxed twice you need to submit and amended return with the SEISS figures in the correct places and removing them from the part of the tax return where you originally put them.

To avoid these errors on your tax return get in touch with Cheylesmore Chartered Accountants today