Below I have summarised all the main tax related updates we have seen this week.
• UK Claims Open for Second Self-Employed Support Grant
• Coronavirus Job Retention Scheme - A Reminder
• What to do if you've claimed too much or not enough from the Coronavirus Job Retention Scheme
• Check if you can get Tax-Free Childcare and 30 hours free childcare during coronavirus
If you have any queries regarding this week’s content, please do not hesitate to contact me.
I hope you have a great weekend!
Steven Hillman BSc (Hons) ACA
Tel: 01934 444100
Claims Open for Second Self-Employed Support Grant
From this week, eligible self-employed individuals will be able to claim for their second grant under the Self-Employment Income Support Scheme (SEISS).
If you are self-employed or member of a partnership, and you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14th July 2020, you will be able to make a claim for a second and final grant from today.
Directors of limited companies and the newly self-employed (2019/20+) are unfortunately not eligible for SEISS.
If eligible, the scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.
You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant. You must make your claim on or before 19th October 2020.
As with the first grant, HMRC are opening the application process in stages over the next week.
You can check if you can claim a grant through the Self-Employment Income Support Scheme, and your individual application date by visiting: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Although we cannot make the application for you, we can talk you through the process and help you with the information you need to enter for the grant application. Please drop us a line and we will be pleased to help.
Coronavirus Job Retention Scheme - A Reminder
From September 1, the government grant towards the employee wages will be reduced to 70%. From October 1, the government grant will be reduced again to 60%. During these months’ employers will be asked to contribute towards the cost of their furloughed employees’ wages to ensure they continue to receive at least 80% of their wages for the time they are on furlough.
You cannot claim for:
• additional National Insurance or pension contributions you make because you choose to top up your employee’s wages
• your employees’ wages for any time they spend working, or any National Insurance or pension contributions you make on these wages
• any pension contributions you make that are above the mandatory employer contribution
You can choose to top up your employees’ wages above the minimum furlough pay amount, but you do not have to. Employees must not work or provide any services for the business during hours which they are recorded as being on furlough, even if they receive a top-up wage.
Please talk to us if you need assistance in making these claims.
What to do if you've claimed too much or not enough from the Coronavirus Job Retention Scheme
The Government has updated its guidance if an employer has claimed too much or not enough from the CJRS.
If you have claimed too much
If you want to delete a claim in the online service, you must do this within 72 hours.
If you have made an error in a claim that means you’ve received too much, you must pay this back to HMRC. You can either:
• tell HMRC as part of your next online claim (your new claim will be reduced and you’ll need to keep a record of the adjustment for 6 years)
• contact HMRC to pay the money back (you should only do this if you’re not submitting another claim)
If you’ve overclaimed a grant and have not repaid it, you must notify HMRC by the latest of either:
• 90 days after the date you received the grant you were not entitled to
• 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed
• 20 October 2020
If you do not do this, you may have to pay a penalty. If you do repay any overclaimed grant, this will prevent any potential tax liability in respect of the overpayment of Coronavirus Job Retention Scheme. HMRC have advised they will not be actively looking for innocent errors in their compliance approach.
If you have not claimed enough
If you made an error in your claim that has resulted in receiving too little money, you will still need to make sure you pay your employees the correct amount. You should contact HMRC to amend your claim and as you are increasing the amount of your claim and they may need to conduct additional checks.
Check if you can get Tax-Free Childcare and 30 hours free childcare during coronavirus
Find out about temporary changes that may affect you if you are applying for, or already getting, Tax-Free Childcare or 30 hours free childcare.
Working parents or carers, who are eligible for Tax-Free Childcare or 30 Hours Free Childcare but have temporarily fallen below the minimum income requirement because of coronavirus, will continue to receive financial support until 31st October 2020.
Critical workers who may exceed the income threshold for the 2020 to 2021 tax year, as a result of working more to play a vital role in tackling coronavirus, will continue to receive support this tax year.
See more information here: https://www.gov.uk/guidance/check-if-you-can-get-tax-free-childcare-and-30-hours-free-childcare-during-coronavirus-covid-19