Below I have summarised all the main tax related updates we have seen this week.
• Coronavirus Local Lockdown Restrictions Support Grant
• Self-Assessment Tax Payers Can Now Apply Online to Spread the Cost of their Tax Bill
• Check if you can claim the Job Retention Bonus from 15 February 2021
• Advisory Fuel Rate for Company Cars
If you have any queries about 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
Coronavirus Local Lockdown Restrictions Support Grant
The Local Restrictions Support Grant (LRSG) supports businesses that have been required to close due to temporary COVID-19 local lockdown restrictions imposed by the government.
The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close for at least 3 weeks due to local lockdown restrictions imposed by government.
It is for businesses that pay business rates on their premises with grants being based on the rateable value of the property on the first full day of local lockdown restrictions .
Local councils may at their discretion also provide funding for businesses that don’t pay business rates up to £1,500.
Read our blog post for more information on the grant scheme: https://blog.hillmans.co.uk/2020/10/coronavirus-local-lockdown-restrictions-support.html
Self-Assessment Tax Payers Can Now Apply Online to Spread the Cost of their Tax Bill into Monthly Payments
Self-Assessment tax payers can now apply online to HMRC to spread the cost of their tax bill into monthly payments without the need to call them.
The online self-serve 'Time to Pay' service, has been increased to £30,000 for Self-Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
Once you have completed your tax return for the 2019-20 tax year, you can use the online self-serve 'Time to Pay' service through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
If you wish to set up your own self-serve 'Time to Pay', you must meet the following requirements:
• No outstanding tax returns
• No other tax debts
• No other HMRC payments set up
• your Self-Assessment tax bill is between £32 and £30,000
• It is no more than 60 days since the tax was due for payment.
If you do not meet these requirements, you might still qualify for Time to Pay, but you will need to call HMRC to set this up.
If you set up a 'Time to Pay' arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
Check if you can claim the Job Retention Bonus from 15 February 2021
The Job Retention Bonus is a £1,000 one-off taxable payment to you (the employer), for each eligible employee that you furloughed and kept continuously employed until 31 January 2021.
You will be able to claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.
We've put together a blog post which details how and when you can claim the Job Retention Bonus from 15 February 2021: https://blog.hillmans.co.uk/2020/10/check-if-you-can-claim-job-retention-bonus.html
Advisory Fuel Rate for Company Cars
HMRC have updated the reimbursement rates for employees' private mileage using their company car from 1 September 2020.
You can view the new rates and guidance in our blog post here: https://blog.hillmans.co.uk/2020/10/advisory-fuel-rate-for-company-cars.html