Subcontractors in the building industry often have their accounts prepared as soon as possible after the tax year so that they can obtain a tax repayment of some of the tax suffered on CIS deductions.
However, many have had a nasty shock already, and there will be many more, in that, instead of having a repayment, they actually have tax to pay! This arises due to less tax being deducted in the year as their gross income would have fallen, but in the main, arises due to the receipt of tranches 1, 2, and 3 of the Self-employed Income Support Scheme. These are paid without deduction of tax and are fully liable to tax and NI.
There have been examples cited in various accounting forums of such individuals moving to other agents “that can get their tax back”! There is no point not disclosing the SEISS grants on the tax return as HMRC are fully aware of the amounts paid and issue revised tax calculations if the figures submitted (or not submitted) do not agree with the information they hold.
