HMRC Stakeholder Digest - 18 May

Please see the following message which we are sharing on behalf of HMRC:

This HMRC Stakeholder Digest provides a round-up of our latest news and updates, which we’d be grateful if you could share with your clients, customers or members.

The government has set up a dedicated support page where businesses can find the right support, advice and information to help with the impact of coronavirus (COVID-19).

Support available as lockdown eases

As some more restrictions lift this week, we see the welcome reopening of many businesses in the accommodation sector, indoor hospitality, entertainment and attractions across the UK.

We’re getting in touch to remind you of the support available through the Coronavirus Job Retention Scheme (CJRS). We’d appreciate your help in sharing this information with your networks.

Furloughing employees

If a business continues to be affected by coronavirus, employers may be able to claim grants under the CJRS.  The UK Government will continue to pay 80% of furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.

In July, CJRS grants will cover 70% of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

Employers will need to pay the difference from July, so that they continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

Employers must pay the associated employee tax and National Insurance contributions to HMRC. If they don’t do that, they’ll need to repay the whole of the CJRS grant as this is a condition of applying for the grant.

More information about the scheme can be found on GOV.UK.

Furloughing flexibly

Employers don’t need to place all their employees on full furlough. They can also use the CJRS flexibly to bring their employees back to work for some of their usual hours. Employers can claim for a portion of their usual wage costs for the hours spent on furlough.

If employers can, it’s best to make a claim once they’re sure of the exact number of hours employees have worked so they don’t have to amend the claim at a later date.

It’s also important to flag our monthly claim deadlines – for example, any business that uses the CJRS for May, must submit their claim by 14 June 2021.   

Further support

There is a helpful step by step guide and a list of monthly claims deadlines available on GOV‌‌‌‌‌‌‌.UK, summarising the latest information on the CJRS and the steps employers need to take to make a claim.

Employers can sign up to receive regular email updates from HMRC, to keep up-to-date with the latest information on our coronavirus schemes. They can simply register and add the subscription topics they’re interested in.

Thousands of people have also joined and benefitted from our live webinars which offer more support on changes to the CJRS, and how they affect employers.

More information on coronavirus financial support is also available through the business support finder on GOV.UK.

As we take each step on the roadmap, we’ll continue to use our social media channels to inform employers and employees of the support available. Please feel free to share these posts on your own social media channels.

Self-Employment Income Support Scheme

All eligible customers can now claim for the fourth grant of the Self-Employment Income Support Scheme (SEISS) - thank you for your continued support in reminding your networks that applications must be made by 1 June at the latest.

As with previous SEISS grants, agents cannot make a claim on behalf of their clients, or use their log in details, as this will trigger a fraud alert and result in significant delays to the customer receiving payment.

To help you support them, here are some further updates on the scheme. 

Amending tax returns – does a customer need to pay back some or all of a SEISS grant? 

If a customer has made an amendment to their tax return on or after 3 March 2021, they need to check if their eligibility for the SEISS grant has been affected. This new requirement applies to claims for the fourth and fifth SEISS grants only, and amendments made on or after 3 March 2021 to Self Assessment returns for tax years between 2016-17 and 2019-20.

Customers must tell us within 90 days if there is an amendment to any of their tax returns on or after 3 March 2021 which either: 

• reduces the amount of the fourth grant they’re eligible for 
• causes them to no longer be eligible for the fourth grant. 

Customers will then need to pay back some or all of the grant. If they do not tell us within 90 days of submitting their amendment, or receiving payment of their grant (whichever is later), they may also have to pay a penalty. 

Customers do not need to tell us if their grant has lowered by £100 or less. If a customer is unsure, they can still tell us about the amendment using the online form. 

Tax returns can only be amended up to 12 months following the filing date, so this time limit will have passed for most returns between 2016-17 and 2018-19, unless they were issued late.  

If returns are amended ‘out of time’, this will not change the relevant tax return so will not be taken into account for the fourth or fifth SEISS grants.

Customers can tell HMRC if they need to pay back some or all of a SEISS grant by completing a simple form online. We will then contact them and let them know how much they need to repay, and how to do this. More information can be found on GOV.UK. 

Frequently asked questions about SEISS

Will receiving a SEISS grant affect future tax returns? 

SEISS grants are subject to Income Tax and National Insurance. If a customer received the first, second and third grants, they should be included in their 2020-21 Self Assessment return and submitted by 31 January 2022. The fourth and fifth grants must be included in their 2021-22 Self Assessment, return which should be submitted by 31 January 2023.  

Can customers claim if they have an outstanding debt on their HMRC account from Self Assessment? 

If customers have tax debt, they should contact us to discuss repayment options, such as a payment plan. As long as they are eligible, customers can still claim the SEISS grant if they have an outstanding debt on their HMRC account from Self Assessment. 

VAT deferral – apply online by 21 June

The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30‌‌ June‌‌ 2020 and were unable to pay in full by 31 March‌‌ ‌2021.

If they haven’t done so yet, businesses can apply now to spread these payments – businesses that join by 19‌‌ ‌May‌‌‌ ‌2021 can pay in up to nine monthly instalments. If businesses apply to spread their payments between 20 May and 21 June they can pay in eight instalments.

The deadline for businesses to join this scheme is 21 June. They can apply quickly and simply online without needing to call us. To find out more, including what your clients need to sign up online, go to VAT deferral on GOV.UK.

If businesses are still unable to pay and need more time, they should contact us.

Businesses may be charged a 5% penalty and/or interest if they do not sign up to the VAT deferral scheme by the deadline of 21 June, or pay in full by 30 June, or get in touch with us to make an alternative arrangement to pay by 30‌‌ ‌June‌‌ ‌2021.

More than 63,500 file Self Assessment on first day of tax year

More than 63,500 customers filed their 2020 to 2021 tax return online on 6 April 2021

And with almost 950,000 online Self Assessment returns received so far this tax year, HMRC is urging others to do the same and file their tax returns early. Each year, thousands of people choose to file early, as soon as one tax year ends and the new one starts.

HMRC has seen a growing trend in early filers. In the last 5 tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

HMRC has also published information to help customers file early – how to do it, what the benefits are, and what they need to get started.

More information can be found on GOV.UK.

Plastic Packaging Tax: Initial guidance published on GOV.UK

Initial guidance to help businesses prepare for the new Plastic Packaging Tax is now available on GOV.UK. The guidance provides a high-level overview of the tax and is designed to help manufacturers and importers of plastic packaging, and businesses that buy plastic packaging (or goods contained in plastic packaging), understand:

• If they will need to register for the tax
• What records they will need to keep
• What steps they will need to take to begin preparing for the introduction of the tax in April 2022.

There is also further information for businesses around the tax’s key definitions, exemptions and reliefs. More information, including detail and examples of items caught by the tax, will be published later in the year.

Claiming tax relief for working from home

Eligible customers can now claim tax relief for additional household costs if they have to work at home on a regular basis, either for all or part of the week. Additional costs include heating, metered water bills or business calls that have been incurred wholly, exclusively and necessarily as a direct result of working from home. They don’t include costs that would stay the same whether employees are working at home or in an office.

Eligible customers can apply quickly and easily using the HMRC online service, which is now open for claims covering periods up to 5 April 2022. For more information go to working at home on GOV.UK.

Employees who have to complete a Self Assessment tax return will need to claim working from home expenses via the employment income pages of their tax return instead of the digital service.

Updated Making Tax Digital (MTD) for VAT Notice

The soft-landing period for digital links expired on 1 April 2021 along with the digital links extension application process. We have now updated VAT Notice 700/22 to reflect these changes and provide further clarification around digital link obligations.

New digital link examples have been included, with narratives explaining in detail how in each example the customer is compliant with the rules. Stakeholders can read the notice on GOV.UK

Help to Grow Stakeholder Toolkit

As part of the over-arching ‘Plan for Jobs’ campaign, BEIS have asked us to share details of the ‘Help to Grow’ initiative launching next month to support small businesses.

In June, small businesses will be able to access a 12 week-programme delivered by leading business schools across the UK. The programme will combine a practical curriculum, with 1:1 support from a business mentor, peer-learning sessions and an alumni network. The programme is 90% subsidised by Government.

A Help to Grow Stakeholder Toolkit has been developed to support you in sharing this information with your networks.

More information on the programme can be found on GOV.UK.

Step 3 COVID-19 restrictions

The Prime Minister confirmed that the Government will proceed with Step 3 of the Roadmap on Monday 17 May.

Further easing of restrictions will allow up to six people or two households to meet inside. Each household can include a support bubble. Outdoor social gatherings have an upper limit of 30 people.

From Monday, guidance on meeting and greeting friends and family will emphasise personal responsibility rather than Government rules.

Step 3 allows the reopening of indoor hospitality and leisure venues, from restaurants and pubs to theatres and cinemas. COVID-secure measures will be in operation to allow such indoor activities.

Indoor and outdoor events will also be allowed to take place, such as live performances, sporting events and business events. Attendance at these events will be capped according to venue type. Attendees must follow COVID-secure measures set out by those venues.

Funeral attendance will no longer be limited to 30 people, but will be determined by how many people the COVID-secure venue can safely accommodate with social distancing. 

No more than 30 people will be able to attend weddings, wakes and other commemorative events, such as Bar/Bat Mitzvahs and Christenings.

Please use the links to guidance and communications products to keep your networks updated with the latest information and advice. This includes assets for celebrating Eid and Shavuot safely. 

Please encourage people in your networks to continue to think Hands, Face, Space and Fresh Air. Please also encourage people to take part in free, regular, rapid COVID-19 testing, which is available to everyone in England.

Be careful: a new COVID-19 variant is spreading in some parts of England

The areas in which the new COVID-19 variant is spreading fastest are:

• Bolton Metropolitan Borough Council
• Blackburn with Darwen Borough Council

Given the increased risk of transmitting COVID-19, you should take particular caution when meeting anyone outside your household or support bubble. This will keep you and others safe. In particular, wherever possible, you should try to:

• Meet outside rather than inside where possible
• Try to keep 2 metres apart from people that you don’t live with (unless you have formed a support bubble with them), this includes friends and family you don’t live with
• Get tested twice a week for free and isolate if you are positive
• Continue to work from home if you can
• Get vaccinated when you are offered it, and encourage others to do so as well

You should get tested for COVID-19, this includes:

• Arrange to have a PCR test if you have symptoms of COVID-19
• Participating in surge testing in your local area
• Get regular rapid tests if you do not have symptoms of coronavirus (COVID-19)

You should self-isolate immediately if you have symptoms or a positive test result for COVID-19. There is financial support if you’re off work because of Coronavirus.

In addition, you should try to avoid travelling in and out of your local area unless it is essential, for example for work or education.

Keeping yourself and others safe

Restrictions have been eased following the move to step 3. However we must continue to exercise caution. You should follow this guidance on what you can and cannot do. It is underpinned by law.

You should also follow the guidance on how to stop the spread of coronavirus at all times, including if you have been vaccinated against COVID-19.

Changes to guidelines and legal restrictions from 17 May

You should continue to work from home if you can. When travelling within the UK, you should aim to do so safely and plan your journey in advance.

You should get a test and follow the stay at home guidance if you have COVID-19 symptoms.

• Gathering limits have been eased. Outdoor gatherings are limited to 30 people and indoor gatherings are limited to 6 people or 2 households (each household can include a support bubble, if eligible).
• New guidance on meeting friends and family emphasises personal responsibility rather than government rules. Instead of instructing you to stay 2m apart from anyone you don’t live with, you are encouraged to exercise caution and consider the guidance on risks associated with COVID-19 and actions you can take to help keep you and your loved ones safe. Remember that the risks of close contact may be greater for some people than others and in some settings and circumstances, there will be specific guidance that you will need to follow even when you are with friends and family.
• Indoor entertainment and attractions such as cinemas, theatres, concert halls, bowling alleys, casinos, amusement arcades, museums and children’s indoor play areas are permitted to open with COVID-secure measures in place.
• People can attend indoor and outdoor events, including live performances, sporting events and business events. Attendance at these events is capped according to venue type, and attendees should follow the COVID-secure measures set out by those venues.
• Indoor hospitality venues such as restaurants, pubs, bars and cafes can reopen.
• Organised indoor sport can take place for all. This includes gym classes. It must be organised by a business, charity or public body and the organiser must take reasonable measures to reduce the risk of transmission.
• All holiday accommodation can open, including hotels and B&Bs. This can be used by groups of up to 6 or 2 households (each household can include a support bubble, if eligible).
• Funeral attendance is no longer be limited to 30 people, but will be determined by how many people the COVID-secure venue can safely accommodate with social distancing. Limits at weddings, wakes and other commemorative events have been increased to 30 people. Other significant life events, such as bar/bat mitzvahs and christenings, will also be able to take place with 30 people.
• The rules for care home residents visiting out and receiving visitors have changed, allowing up to five named visitors (two at any one time), provided visitors test negative for COVID-19.
• All higher education students are able to access in-person teaching.
• Support groups and parent and child group gathering limits have been increased to 30 people (not including under 5s)
• There is no longer a legal restriction or permitted reason required to travel internationally. A traffic light system for international travel has been introduced, and you must follow the rules when returning to England depending on whether you return from a red, amber or green list country.

More information on the restrictions and relaxations are detailed on GOV.UK. Information on the Variant of Concern B1.617.2 is available on GOV.UK.