Crypto Tax
Research finds SEISS and crypto investments could lead to self-assessment errors
Nearly a quarter of self-employed people feel that self-assessment is the worst part about being their own boss. Much of the confusion stems from exactly what should be included on the form.
Research from GoSimpleTax shows that there’s no consensus on whether or not people should include SEISS Covid support they had received. 13% feel they won’t need to include it and 9% were not sure if it needs to be accounted for. Grants do need to be properly accounted for if claimed or people risk either fines or even accidentally paying double tax on them.
“Anyone who received a SEISS grant in the 2020/21 tax year must include it on their tax return this year,” Mike Parkes, tax expert at GoSimpleTax, said. “Crucially, it needs to be accounted for in the right place on the form – there is a dedicated area for declaring Covid-19 relief grants. If you include it in your general income, chances are your SEISS grant will be added automatically, and you will end up paying tax on it twice.”
The survey also found that nearly half (42%) of self-employed people generate additional income from other sources including social media, property rentals, and crypto currency. Yet 14% are unsure if they should account for additional income on their self-assessment with 12% saying that they won’t include it.
“Income should be considered as a whole,” Mike added, “it doesn’t really matter where your income is coming from, what’s important is that it’s all declared and accounted for. If you have a side hustle selling on Facebook Marketplace, or have dabbled in cryptocurrency which has generated income, you need to consider this income as part of your overall taxable amount.
