Employment tax

Latest updates:
HMRC issues further guidance needed in relation to the residence of individuals due to the COVID-19 pandemic

This guide has been produced by the CIOT to help employees and employers understand the tax implications when employees are working from home.

HMRC has published guidance on how to treat certain expenses and benefits provided to employees during coronavirus (COVID-19).

The CIOT has produced this introductory guide to Statutory Sick Pay (SSP), which includes details of how the rules should be applied in relation to COVID-19. The government guidance on the Coronavirus Statutory Sick Pay Rebate Scheme, which can be used to reclaim employees' coronavirus-related Statutory Sick Pay (SSP), can be found on GOV.UK.

We have also prepared a short article highlighting the tax implications of waiving remuneration.

The Pensions Regulator has produced guidance to provide support for those facing difficult decisions and circumstances as a result of the coronavirus.

HMRC has provided guidance on temporary changes to some pension processes to help pension scheme administrators during the COVID-19 pandemic. The changes apply until June 2020, when HMRC will provide a further update.

Regulations have been laid to prevent an employee from experiencing disadvantage in relation to family-related statutory payments and Maternity Allowance as a result of their being placed on temporary leave under the Coronavirus Job Retention Scheme. More information can be found here.

HMRC has confirmed that the deadline for filing PAYE returns and paying tax due in regard to the Short Term Business Visitors (STBV) Special Arrangement PAYE81949 (previously PAYE81950) have been extended to 31 May 2020 in relation to the 2019-20 annual return for these Special Arrangement schemes.

HMRC issues further guidance needed in relation to the residence of individuals due to the COVID-19 pandemic - HMRC have updated the Residence, Domicile and Remittance Basis Manual with a Q&A concerning international tax and coronavirus (COVID-19) at Annex D.

Query  Status/response
If an employer is unable to meet a tax obligation (for example P60, PSA, P11D deadlines) due to the impact of COVID-19, will HMRC accept that as a reasonable excuse?
HMRC are encouraging employers and their agents to file their returns on time if they are able to do so.  Where an employer is unable to file their returns on time, then as reported on our COVID-19 Tax Administration page HMRC will accept that as a reasonable excuse provided the failure is remedied as soon as the employer is able to.
Do Coronavirus Job Retention Scheme (CJRS) grants fall within the Senior Accounting Officer (SAO) regime?
HMRC consider the CJRS grants do come within the SAO regime as the grants will be part of a company’s receipts for CT purposes and the employee wages and NICs will be a business expense in calculating taxable profit, so fall within paragraph 14(3)(a) schedule 46.  Therefore, that a company’s SAO will need to ensure appropriate accounting arrangements for CJRS grants and the wages they cover.
If an employee is self-isolating for 14 days, in accordance with government guidance, because they have recently returned to the UK, do they qualify for the coronavirus SSP scheme?
No. We have received confirmation from HMRC that the employee would be considered to be in quarantine, rather than self-isolating, and so would not qualify. Published guidance will be updated to reflect this.