As we come towards the end of the tax year, April is always a busy time for us assisting our self-employed clients that work in the construction industry and have CIS deducted from their payments.

When the Self Employed Income Support Scheme (SEISS) was launched as part of the COVID support we made a very early warning to watch the effect of these grants on your taxable position. The main difference of course being that the grants did not have any tax deducted at source. We saw a lot of new clients join us late in the filing period who hadn’t been aware or factored this effect into what it meant for their tax bills come January.

With recipients of the 4th and 5th grants needing to record these on their 2021/22 tax returns, here’s another early warning to make sure you get your tax returns done promptly after the tax year finishes on 5th April so you can assess what (if any) impact these have on your taxable position.

As well as income tax and national insurance considerations, you may also need to consider who additional income interacts with other items. A primary one we say over the last filing period was where additional grant income tipped taxpayers income over £50k which meant it also started to effect Child Benefit receipts.

The earlier the consideration you can give to these the better.

If you need help with your tax return this year – do get in touch.