4th SEISS grant & Tax Return for 2020-2021

Blooo

The 4th SEISS grant which is not payable until April or May will not come under the accounting period, despite containing two whole months of 'profits' (not turnover) that should be included in this tax year surely?

What are others going to do when they file their returns, or is it too early to say?

I signed in and begun building my tax return and it only allowed me to list the first 3 grants which cover up to the end of January 2021 - what about February, March and the first week of April which come under the 4th grant, which I'll also be claiming?

Technically, surely, I should be able to allocate February and March (from the Feb-April 4th SEISS Grant) for my accounting purposes for my tax return? That would be 'correct' in my view.

Jeremy535897

The legislation (schedule 16 FA 2020) currently says SEISS grants are taxable in 2020/21. It will be amended so as to treat the 4th and 5th grants as taxable in 2021/22. GAAP and FRS rules are overridden.

Jeremy535897

Yes. The proposed amendment to schedule 16 FA 2020 is in clause 32 Finance Bill 2021:
32 Self-employment income support scheme
(1) In section 106 of FA 2020 (taxation of coronavirus support payments), in subsection (3)—
 (a) after “provision about” insert “(including provision modifying)”;
 (b) for “(2)(c)” substitute “(2)(b)”.
(2) In paragraph 3(3) of Schedule 16 to FA 2020 (self-employment income support scheme payments to be treated as receipts of the tax year 2020-21), for “2020- 21” substitute “in which the payment was received”.
(3) In paragraph 8 of that Schedule (charge if person not entitled to coronavirus support payment)—
 (a) in sub-paragraph (3)—
  (i) in the words before paragraph (a), after “scheme” insert “or the self-employment income support scheme”;
  (ii) in paragraph (b), before “because” insert “in the case of a payment made under the coronavirus job retention scheme,”;
 (b) in sub-paragraph (4)(a), after “scheme” insert “or the self-employment income support scheme”.
(4) The amendments made by subsections (2) and (3) have effect in relation to coronavirus support payments received on or after 6 April 2021.
(5) In this section “coronavirus support payment” has the meaning it has in Schedule 16 to FA 2020 (see section 106(2) and (5) of that Act).