Self-employed taxpayers have been told they must declare COVID-19 grants in future tax returns, with money handed out under the Self-Employment Income Support Scheme subject to income tax and self-employed national insurance. The warning comes with a poll from GoSimpleTax seeing 46% of sole traders say they did not believe this information needed to be included. Under current HMRC rules, any government support received during the pandemic must be included in 2020/21 tax returns. Mike Parkes, technical director at GoSimpleTax, said it is “essential to understand the implications and tax liabilities that come with these emergency measures.” He added: “While it’s next year’s tax bill that will be dominated by coronavirus, it will pay to get ahead of the curve.”
Read more: Daily Express
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