Covid Self-Isolation Support Payments
If you’ve self-isolated due to coronavirus (COVID-19), you may be entitled to a lump sum payment of £500, under the Self-Isolation Support Scheme in Wales.
Payments received are taxable and exempt from Class 2 and Class 4 NI contributions. If you file a self assessment tax return, payments under this scheme are accounted for as income.
If you’re an employee, include the total of the self-isolation support scheme payments you’ve received in the ‘other benefits’ (including interest-free and low interest loans) box of the ‘benefits from your employment’ section of SA102.
You should also report the payments in this way if you’re both employed and self-employed, or employed and a partner in a trading partnership.
- If your relevant trading profits for tax year 2020 to 2021 total £6,475 or more, you’ll pay Class 2 National Insurance contributions.
- If your profits are £9,501 or more, you’ll also pay Class 4 National Insurance contributions.
- If you’ve already submitted your tax return for tax year 2020 to 2021, but have not made the required adjustments, you should correct this.
- If you’ve submitted your return online, submit an amendment by completing the appropriate ‘Adjustment to profits chargeable to Class 4 National Insurance contributions’ box.
Further information is available at:
Let’s Talk
If you need help with any of this, please get in touch with our team who are more than happy to advise. Email info@lhp.co.uk or ring 01267 237534.
