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 Earned Income then complete the declaration within the COVID-19 tab.

Incorrectly claimed coronavirus support payments should also be reported within the COVID-19 tab.

Show Employment — COVID-19 reporting guide

Step one — Enter the amount claimed in the tax year in Earned Income

Enter the support payment amount claimed within the Employment section of Earned Income.

  1. Select Earned Income, then Employment and Create Employment (if one isn't already set up) or an employment from the list.
  2. From Benefits select Other benefits (including interest free loans) from the Employment benefit type drop-down.
  3. Enter a Description for the type of support payment received.
  4. Enter the amount.
  5. Select Save.

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. Select Earned Income, then COVID-19.

  2. Select the Declaration checkbox.

  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for other support payments incorrectly claimed.

  3. Select Save.

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. Select Earned Income, then Self-employment and Create Self-employment (if one isn't already set up) or a Self-employment from the list.
  2. Select Income and Expenses.
  3. From Income, enter the amount in Other business income not included in turnover.
  4. Select Save.

Step two — Enter the amount received in the accounting period

  1. Select Earned Income, then NIC.
  2. Enter the amount in Adjustment to profits chargeable to Class 4 NIC.
  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. Select the Declaration checkbox.

  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for other support payments incorrectly claimed.

  3. Select Save.

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. Select Earned Income, then Self-employment and Create Self-employment (if one isn't already set up) or a Self-employment from the list.
  2. Select Income and Expenses.
  3. From Income, enter the amount in Other business income not included in turnover.
  4. Select Save.

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. Select Earned Income, then COVID-19.

  2. Select the Declaration checkbox.

  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for other support payments incorrectly claimed.

  3. Select Save.

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. Select Earned Income, then Partnership and Create Partnership (if one isn't already set up) or a partnership from the list.

  2. Select Trade.

  3. From Taxable profit enter the amount in Other business income.
  4. Select Save.

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. Select Earned Income, then Partnership and Create Partnership (if one isn't already set up) or a partnership from the list.

  2. Select Trade.

  3. From Trading Profit or Loss enter the amount in Share of profit or loss.
  4. Select Save.

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. Select Earned Income, then COVID-19.

  2. Select the Declaration checkbox.

  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for other support payments incorrectly claimed.

  3. Select Save.

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

  1. Select Earned Income, then COVID-19.

  2. Select the Declaration checkbox.

  3. Select Save.

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. Select Earned Income, then COVID-19.

  2. From Incorrectly Claimed Coronavirus Support Payments, enter amounts for other support payments incorrectly claimed.

  3. Select Save.

Related content

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