How to report self-isolation support payments
Find out how to report support payments relating to self-isolation due to coronavirus (COVID-19), on your Self Assessment tax return.
If you’ve self-isolated due to coronavirus (COVID-19), you may be entitled to a lump sum payment of £500, under one of the following schemes:
- Test and Trace Support Payment Scheme, if you live in England
- Self-Isolation Support Scheme, if you live in Wales
- Self-Isolation Support Grant, if you live in Scotland
There is no equivalent scheme in Northern Ireland. Find support if you’re in Northern Ireland.
Payments received under any of these schemes are taxable, but are exempt from Class 2 and Class 4 National Insurance contributions. If you’re required to file a Self Assessment tax return, payments received under one of these schemes must be accounted for as income.
What to do if you’re an employee
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.
What to do if you’re self-employed or 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.
Relevant profits include trading profits from all of your self-employments and partnerships.
When calculating your relevant profits, you must include the total of your self-isolation support payments.
If your total relevant profits for tax year 2020 to 2021 are below £6,475, you do not need to make any adjustments to your profits for the Class 2 National Insurance contributions exemption.
If your total relevant profits for tax year 2020 to 2021 are £6,475 or more, you may have to make an adjustment for the Class 2 or Class 4 National Insurance contributions exemption. You should enter the amount of the self-isolation support scheme payments received in the ‘Adjustment to profits chargeable to Class 4 National Insurance contributions’ box on either your:
If you generally complete a short tax return (SA200) and your profits are £6,475 or more, you may need to complete the main tax return (SA100 and any relevant supplementary pages) instead. This is so you can make the adjustment for the Class 2 or Class 4 National Insurance contributions exemption.
If you wish to pay Class 2 National Insurance contributions voluntarily, you can still do this by ticking the appropriate box on your return.
More information for partners in a trading partnership
Where the self-isolation support scheme payments are included in a partnership’s accounts, only the partner who receives the payments is entitled to adjust their taxable profit share for Class 2 and Class 4 National Insurance contributions purposes.
Where the self-isolation support scheme payments are not included in a partnership’s accounts, the recipient of the payments should enter the payments received on their partnership pages (SA104F or SA104S), in:
- box 19 – ‘Any other business income not included in the partnership accounts’
- box 27 – ‘Adjustment to profits chargeable to Class 4 National Insurance contributions’
If you’ve submitted a return without the required adjustments
If you’ve already submitted your tax return for tax year 2020 to 2021, but have not made the required adjustments (as given in this guidance), you should correct this.
If you submitted a return on paper, write to us at:
Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
You’ll need to ask us to amend your return by making an adjustment for the Class 2 and Class 4 National Insurance contributions exemption for the amount of self-isolation support scheme payments received. You must also provide:
- your name
- your address
- your Unique Taxpayer Reference
- the tax year
If you submitted your return online, submit an amendment by completing the appropriate ‘Adjustment to profits chargeable to Class 4 National Insurance contributions’ box.