We are reminding businesses, employers, employees and self-employed individuals that grants from the various Government schemes to provide support during the Coronavirus outbreak are taxable in the same way as other income.

Payments made under schemes including the Coronavirus Job Retention Scheme (CJRS), the Self-Employment Income Support Scheme (SEISS), the Coronavirus Statutory Sick Pay Rebate Scheme (CSSPRS) and others are all considered to be taxable income.

The position had been set out in the various guidance documents for the schemes but has now been underscored by a series of Government amendments to the Finance Bill 2020, currently before Parliament, intended to ensure that income from these schemes is taxable.

Concerns had been raised by groups, including the Low Incomes Tax Reform Group (LITRG), that the use of the word ‘grant’ concerning SEISS, in particular, could lead to the mistaken impression that funds received were not taxable income.

While such payments are taxable income, it remains the case that the actual amount of tax due on these payments will depend on your overall tax position.

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Smailes Goldie Group

Smailes Goldie Group

We are a leading firm of chartered accountants, tax advisors and business advisors offering a full range of financial advice for you, your family and your business. Our clients range from SMEs and large corporations to Owner Managed and Family Businesses, Professional Partnerships, Sole Traders, New Businesses, Charities and the Not for Profit sector.

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