Taxation of coronavirus support payments

HMRC has published legislation and a tax information and impact note to ensure that particular grants to help businesses employers and individual partners of partnerships affected by the coronavirus crisis are taxable income. This includes payments made under the coronavirus job retention scheme (CJRS) the self-employment income support scheme (SEISS) and other business-supporting grant schemes.

The provisions also give HMRC powers to recover payments to which recipients were not entitled to under the SEISS or the CJRS or when an employer has failed to use a grant to pay employees make pensions contributions or pay PAYE or National Insurance contributions. HMRC will be able to do this by raising income tax assessments or requiring taxpayers to submit a self-assessment tax return.

The department will be able to charge a penalty in cases of deliberate non-compliance. 

Comments on the provisions should be emailed by 12 June to: