Reporting COVID-19 support payments to HMRC

On this page learn about HMRC guidance on reporting COVID-19 support payments for:

Employment

COVID-19 support payments are taxable income

COVID-19 support payments count as taxable income for the tax year they were received in.

Types of support payments include Track and Trace, Self Isolation and grants.

Report the amount received as Employment Income, unless reporting under Self-Employment or Partnerships.

HMRC guidance for employments on reporting COVID-19 support payments

There are two steps to report COVID-19 support payments.

Enter the amount within Employments then complete the COVID-19 declaration within Tax adjustments and charges.

Incorrectly claimed coronavirus support payments should also be reported within Tax adjustments and charges.

Show Employment — COVID-19 reporting guide

Step one — Enter the amount claimed in the tax year in Employments

Enter the support payment amount claimed within an Employment and Main details.

  1. From Employments, Add new 'Employment' (if one isn't already set up) or select one from the list.
  2. From Main details select Benefits and Expenses.
  3. Enter the support payment amount claimed in Other benefits.
  4. Select OK.

Step two — Complete the declaration

Next, select the declaration to show Coronavirus support payments have been included as taxable income when calculating business profits.

  1. From Tax adjustments and charges select COVID-19.

  2. Select the Declaration checkbox.

  3. Select OK.

Report incorrectly claimed coronavirus support payments

You should report any incorrectly claimed coronavirus support payments.

Do not include amounts already repaid or requested by HMRC.

  1. From Tax adjustments and charges select COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for SEISS (Self-Employment Income Support) payments or other support payments incorrectly claimed.

  3. Select OK.

Self-Employment

Your self-employed clients may have received coronavirus support payments under various schemes.

You should report support payments as business income.

Each scheme has its own reporting requirements.

Self-isolation support payments

Test and trace, self isolation support schemes or grant payments are taxable. These amounts are taxable income in the tax year your client received them.

This amount is not liable to National Insurance contributions (NICs).

HMRC guidance states amounts received count as business income. Report this correctly by making an adjustment to the profits chargeable to NICs.

Show Self-Employment — Self-isolation support payments guide

Step one — Enter amounts your client correctly received in the accounting period

  1. From Self-employments, Add new 'Self-employment' (if one isn't already set up) or select one from the list.

  2. From Accounts information, select Accounts Details.

  3. Enter the amount in Other income/profits.
  4. Select OK.

Step two — Enter the amount received in the accounting period

  1. Select National Insurance contributions.
  2. Enter the amount in Adjustment to profits chargeable to Class 4 NICs.
  3. Select OK.

Step three — Complete the declaration

Next, select the declaration to show Coronavirus support payments have been included as taxable income when calculating business profits.

  1. From Tax adjustments and charges select COVID-19.

  2. Select the Declaration checkbox.

  3. Select OK.

Report incorrectly claimed coronavirus support payments

You should report any incorrectly claimed coronavirus support payments.

Do not include amounts already repaid or requested by HMRC.

  1. From Tax adjustments and charges select COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for SEISS (Self-Employment Income Support) payments or other support payments incorrectly claimed.

  3. Select OK.

Other Coronavirus Self-Employment support payments

Report other coronavirus support payments as business income for the relating accounting period.

Types of payments include:

  • CJRS — Coronavirus Job Retention scheme
  • JRS — Job retention scheme
  • EOTHO — Eat out to help out scheme

Show Self-Employment — Other coronavirus support payments guide

Step one — Enter amounts your client correctly received in the accounting period

  1. From Self-employments, Add new 'Self-employment' (if one isn't already set up) or select one from the list.

  2. From Accounts information, select Accounts Details.

  3. Enter the amount in Other income/profits.
  4. Select OK.

Step two — Complete the declaration

After completing the steps above, select the declaration to show Coronavirus support payments have been included as taxable income when calculating business profits.

  1. From Tax adjustments and charges select COVID-19.

  2. Select the Declaration checkbox.

  3. Select OK.

Report incorrectly claimed coronavirus support payments

You should report any incorrectly claimed coronavirus support payments.

Do not include amounts already repaid or requested by HMRC.

  1. From Tax adjustments and charges select COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for SEISS (Self-Employment Income Support) payments or other support payments incorrectly claimed.

  3. Select OK.

Partnership

Partnership — Self-isolation support payments

Test and trace, self isolation support schemes or grant payments are taxable. These amounts are taxable income in the tax year a partner received them.

This amount is not liable to National Insurance contributions (NICs).

HMRC guidance states amounts received count as business income. Report this correctly by making an adjustment to the profits chargeable to NICs.

There are two ways of reporting Self-isolation receipts for the tax year. This depends on whether the partnership's business accounts excluded or included the Self-isolation receipts.

Show Partnership — Self-isolation support payments guide

Step one — Report Self-isolation amounts

To complete step one, choose from either scenario A or B, not both.

A) Self-isolation amounts excluded from the partnership accounts for the period(s) reported in the tax year

To enter the Self-isolation income correctly received in the tax year:

  1. From Self-employments, Add new 'partnership' (if one isn't already set up) or select one from the list.

  2. Select Taxable profit & losses.

  3. Enter the amount in Other business income not included in the accounts.
  4. Select OK.

B) Self-isolation amounts included in the business accounts ending in the tax year

First, enter the Self-isolation amounts included in the accounts for the accounting period:

  1. From Self-employments, Add new 'partnership' (if one isn't already set up) or select one from the list.

  2. Select Trading profit.

  3. Enter the amount in Share of the partnership's profit or loss.
  4. Select OK.

Step two — Enter the amount received in the accounting period

  1. Select National Insurance contributions.
  2. Enter the amount in Adjustment to profits chargeable to Class 4 NICs.
  3. Select OK.

Step three — Complete the declaration

After completing the steps above, select the declaration to show Coronavirus support payments have been included as taxable income when calculating business profits.

  1. From Tax adjustments and charges select COVID-19.

  2. Select the Declaration checkbox.

  3. Select OK.

Report incorrectly claimed coronavirus support payments

You should report any incorrectly claimed coronavirus support payments.

Do not include amounts already repaid or requested by HMRC.

  1. From Tax adjustments and charges select COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for SEISS (Self-Employment Income Support) payments or other support payments incorrectly claimed.

  3. Select OK.

Partnership — Other Coronavirus support payments

Report other coronavirus support payments as business income for the relating accounting period.

Types of payments include:

  • CJRS — Coronavirus Job Retention scheme
  • JRS — Job retention scheme
  • EOTHO — Eat out to help out scheme

The partnership return should also include a completed declaration and any amounts incorrectly claimed.

Complete the declaration

After completing the steps above, select the declaration to show Coronavirus support payments have been included as taxable income when calculating business profits.

  1. From Tax adjustments and charges select COVID-19.

  2. Select the Declaration checkbox.

  3. Select OK.

Report incorrectly claimed coronavirus support payments

You should report any incorrectly claimed coronavirus support payments.

Do not include amounts already repaid or requested by HMRC.

  1. From Tax adjustments and charges select COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for SEISS (Self-Employment Income Support) payments or other support payments incorrectly claimed.

  3. Select OK.

Related content

Open our Sage Advice article on coronavirus support payments (opens in a new window or tab)