This year has been very different and, for many, a very challenging 12 months. For the construction industry, particularly, the true cost of COVID-19 may only start to be realised now. We estimate that 95% of the construction industry will not receive a tax rebate this year.
All of the SEISS grants are subject to tax and national insurance. For the majority of taxpayers, the combined rate is 29%. That means 29% of the support you received will now be due back to HMRC.
So if you received £10000 in Grants, the cost of those grants is now £2900, and this cost will now be included in your tax calculation. This will significantly impact your repayment, and some clients may even receive a tax and national insurance bill.
To help guide you through how the true cost of COVID-19 will affect you, we have developed this calculator for you.
This calculation includes self-employed income and CIS tax deductions
This may be useful if the repayment is less than you expected.