Coronavirus / COVID support and tax

See untied’s update on SEISS.

untied includes specific COVID-related functionality in untied Pro and untied lite, covering tax treatment from SEISS to furlough and other Coronavirus support. There is also a help article on where to find the COVID section in untied.

We have also included some guidance information below for reference, along with how to do this in untied (sometimes it can be done in various places – we just give one suggestion here). Note that the guidance is just that, and is intended for individuals receiving support.

Reduce the tax you pay and other tips

Claiming for working from home

Whether working from home as employed or self-employed, you will be entitled to claim some of your costs.

If you’re employed and haven’t been fully reimbursed (including for utilities) then you can claim £6 a week (£312 a year) as an employment cost – when tax is taken into account it works out at saving most people £60 in tax and more if you pay tax at a higher rate.

If you’re self-employed you can claim a flat rate expense according to the number of hours you work from home:

Hours of business use per month Flat rate per month
25 to 50 £10
51 to 100 £18
101 and more £26

This covers things like rent, rates, utility bills – but not phone or internet. So you can also claim a business portion of your phone and internet costs.

If you’re an untied user, the wizards will work this out.

Payment plans

If you have not already agreed a payment plan with HMRC, we suggest that you contact them. See untied’s help on payment plans here.

Taxable income on your tax return

SEISS (Self-Employment Income Support Scheme) grant income

This is taxable income.

It should be tagged as “SEISS/COVID grant income” in untied.

Local authority COVID grants

This is taxable income.

If this relates to your business, tag this as “SEISS/COVID grant income” in untied.

If it relates to a property you are letting out, then tag it as “Rental income” or “Furnished Holiday Letting rental income” as appropriate.

Jobseeker’s Allowance (JSA)

If you were on Jobseeker’s Allowance you’ll get a form (P45U or P60U). There you can find the information you need. This will be included in your tax calculation as State Pensions and Benefits.

You can enter this in untied via the COVID menu.

Contribution-based Employment and Support Allowance (ESA)

If you had contribution based ESA you’ll get a form (P45U or P60U). There you can find the information you need. Enter this in untied via the COVID menu.

If you were an employer and received furlough payments to help you pay your employee(s)

Coronavirus Job Retention Scheme (CJRS/furlough) support to help you furlough your staff is taxable.

It should be tagged as “SEISS/COVID grant income” in untied.

On your tax return but already included

Furlough (CJRS) salary

Although this is taxable, your furlough payment will be included in your salary. There is no need to declare it separately.

Not on your tax return

Universal Credit (UC)

You do not need to declare UC payments.

Income related Employment and Support Allowance (ESA)

You do not need to declare income related ESA.

Other

COVID loans

These do not get included on your tax return. Any interest will be treated as an expense when you pay it.

Do not tag COVID loans in untied.

Other COVID support

In general, all grants will be taxed as business income. If in doubt, contact us and we can help you work out how it should be treated.