Weekly Update 17.04.2020

Weekly Update 17.04.2020

Below I have summarised all the main tax updates we’ve seen this week from HMRC.

-Chancellor extends furlough scheme to end of June
-HMRC issue updated guidance for the Self-employment Income Support Scheme
-Furlough scheme cut-off date extended to 19 March
-List of lenders offering 3 month mortgage holidays
-Changes to off-payroll working rules delayed until 2021
-Qualification for retail, hospitality or leisure business rates relief due to coronavirus

As always if you need any support or advice please don’t hesitate to contact me.

Have a great weekend!


Chancellor extends furlough scheme to end of June
The Government has today confirmed the Coronavirus Job Retention Scheme (CJRS) will now be open until the end of June, rather than the end of May as originally annouched.

For full details read our blog post here: https://blog.hillmans.co.uk/2020/04/chancellor-extends-furlough-scheme-to-end-of-june.html

HMRC issue updated guidance for the Self-employment Income Support Scheme
HMRC have issued further guidance in relation to the grant support scheme for the self-employed.

The key updates include: 
• HMRC are aiming to contact self-employed individuals in mid-May, inviting them to make an application.  Payments are expected to be made in June.
• Applicants will need to confirm to HMRC that their business has been adversely affected by coronavirus. HMRC have stated they will “as usual use a risk based approach to compliance”.
• HMRC have now confirmed how ‘trading profit’ is defined for the purposes of the scheme.
• HMRC have clarified the definition of ‘total income’. A condition of the scheme is that the trading profits are more than 50% of the person’s total income.
• HMRC have confirmed that individuals may also make an application for Universal Credit at the same time as making a claim under the grant support scheme. It is important to note that the support received under the scheme must be declared for the purposes of Universal Credit.
• Amendments made to personal tax returns after 26 March 2020 will be ignored for the purposes of establishing an individual’s eligibility.

You can read the full details on the HMRC website here: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme

Furlough scheme cut-off date extended to 19 March 
HMRC have released a major new update to the Job Retention Scheme. It is now possible to claim for furloughed employees that were on a PAYE payroll scheme on or before 19th March 2020, and in addition were notified to HMRC on an RTI submission on or before 19th March 2020.

This has changed from the previously advised date of the 28th February 2020. This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before the 19th March 2020.

You can read further details here: https://www.gov.uk/government/news/furlough-scheme-cut-off-date-extended-to-19-march

List of lenders offering 3 month mortgage holidays
We’ve uploaded a list to our website of all the major UK mortgage lenders, and whether they are allowing 3 month mortgage holidays due to the Coronavirus or not. The list includes their telephone number and website details.

You can view the list here: https://www.hillmans.co.uk/3-month-mortgage-holidays

Changes to off-payroll working rules delayed until 2021
Amid concerns about their potential impact during the coronavirus pandemic, the government has announced a one year delay to changes to the off payroll working rules, due to take effect from April 2020.

For full details read our blog post here: https://blog.hillmans.co.uk/2020/04/changes-to-off-payroll-working-rules-delayed.html

Qualification for retail, hospitality or leisure business rates relief due to coronavirus
It has been brought to our attention that there is some confusion around who qualifies for the “retail, hospitality or leisure business rates relief due to coronavirus”

At the moment, there is no definitive list of what activities are or are not included. We are hearing that trades that you thought might not be included have received the grant in their areas.

So, our advice is, if you fall into one of the categories listed on our website it is well worth claiming to see if you will receive the grant…(It could be the difference between getting £10k and £25k)

For full details read our blog post here: https://blog.hillmans.co.uk/2020/04/qualification-for-retail-hospitality-or-leisure-grant.html

If I can be of any assistance please drop me a line.

Stay safe and well.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
https://www.hillmans.co.uk/covid-19-updates