Action required – upcoming deadline for furloughing employees and SEISS update
I’m writing to you with the latest information about the financial support schemes available to help your clients, as part of the UK Government’s Plan for Jobs.
To find out what other financial support may be available for your clients during this time, search ‘find coronavirus financial support’ on GOV.UK.
Claiming the fifth SEISS grant
Your clients will be able to make claims for the fifth SEISS grant when the online claims service opens in late July. From mid-July, we will be contacting customers who may be eligible to let them know their personal claim date. This will be the earliest date they can make their claim.
The fifth grant will be determined by a turnover test for most customers. The test considers how much your clients’ turnover has gone down by in the 2020-21 tax year due to the pandemic. For more information on turnover, search ‘SEISS’ on GOV.UK.
Customers who were not eligible for the fourth grant, will not be eligible for the fifth grant either as we’re using the same tax returns to determine eligibility for both grants. Guidance is now available on GOV.UK, search ‘Self-Employment Income Support Scheme’ for more information.
You can support your clients now to get ready:
Reporting SEISS grants correctly on Self Assessment tax returns
Over the last few months we have noticed an issue arising from SEISS grants being reported incorrectly on 2020-21 Self Assessment tax returns. SEISS grants are taxable and subject to self-employed National Insurance contributions, which means they need to be reported on tax returns.
We have implemented an auto-correct solution that will address the majority of any new incorrect returns. However, depending on the circumstances, your clients may need to take actions to avoid being charged tax and self-employed National Insurance twice on the grant(s) received. Please search ‘change SEISS return’ on GOV.UK for more information.
Contacting customers for further checks
We have begun contacting some customers who may be eligible for the fifth SEISS grant if they started trading in 2019-20, to verify their identity. We are asking customers for:
To confirm the contact is genuine, you can refer your clients to the ‘HMRC trusted contacts’ page on GOV.UK.
Thank you if you have submitted your client’s June furlough claims already. If you haven’t submitted them yet, you must do so by the deadline of Wednesday 14 July.
For June employers can claim 80% of their furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month.
What you or your clients need to do now
For July, the UK Government will pay 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to pay the difference, so that they can continue to pay their 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.
The CJRS calculator is available to help you work out how much you can claim for employees up to the end of September. To find this and everything you need to know about the CJRS, search ‘Job Retention Scheme’ on GOV.UK.
To make it easier for employers to add employee details to their CJRS claims, templates are available if they are claiming for between 16-99 employees, or for 100 or more employees. To find the latest template, search ‘download a template if you’re claiming for 16 or more employees’ on GOV.UK.
The template file types that can be submitted have changed, and any templates must now be submitted as .xlsx or .csv files. If you or your clients submit a template using any other file type, you’ll receive an error message to say the file has not been accepted.
You can find everything you need to know about the CJRS on GOV.UK, but here are some answers to the questions that employers have been asking us recently:
What if I’ve claimed too much in error?
If you or your client have claimed too much CJRS grant and have not already repaid it, employers can repay as part of their next online claim without needing to call us. If they claimed too much but do not plan to submit further claims, they can let us know and make a repayment online through our card payment service or by bank transfer – go to ‘pay Coronavirus Job Retention Scheme grants back’ on GOV.UK.
Employers must notify us and repay the money by the latest of whichever date applies below:
If they do not do this, employers may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search ‘interest rates for late and early payments’ on GOV.UK.
What if I haven’t claimed enough?
If employers made a mistake in their claim that means they received too little money, they’ll need to amend it within 28 calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, in which case the deadline is the next weekday. The deadline to amend claims for June is Wednesday 28 July.
To find out how to amend a claim, search ‘get help with the Coronavirus Job Retention Scheme’.
The Extended Loss Carry Back measure announced at Budget 2021 allows businesses to make claims to carry back losses for a further two years than current rules allow. This temporary extension applies for losses in accounting periods ending between 1 April 2020 and 31 March 2022.
Claims over £200,000 must be made in a company tax return (CT600). Box 45 (claim or relief affecting an earlier period) on the return should be completed, and details of the carry back claims included in the computations that accompany the return and accounts.
There’s no need to submit amended returns for any earlier periods the extended relief applies to, as claims will be treated as amendments to those returns.
Claims below the £200,000 limit can be made outside of the company tax return. For how to do this, search ‘extended loss carry back’ and for more on trading loss claims, search ‘claim relief corporation tax trading losses’ on GOV.UK.
The VAT deferral new payment scheme is now closed. If your clients are unable to pay their outstanding VAT debt, help is still available – go to GOV.UK and search ‘if you cannot pay your tax bill on time’.
Your clients may be charged a 5% penalty and/or interest if they did not pay in full, join the VAT new payment scheme online by 21 June or make an arrangement to pay by 30 June 2021.
For more information on VAT deferral, go to GOV.UK and search ‘pay VAT deferred due to coronavirus’.
Many agents have benefitted from our webinars, which offer information on the CJRS, other government support and how it applies to your clients. To book online, or to view updated guidance, go to GOV.UK and search ‘help and support if your business is affected by coronavirus’.
There’s a list of monthly claims deadlines and a helpful step-by-step guide on GOV.UK – you can find these by searching ‘Job Retention Scheme step by step guide’.
We are urging customers to be careful if they are contacted out of the blue by someone asking for money or personal information. There are a lot of scams around where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If in doubt, we advise you not to reply directly to anything suspicious, but to report it to HMRC straight away – search GOV.UK for ‘HMRC scams’.
The National Cyber Security Centre has a helpful new guide on how to stay secure online and protect yourself or your business against cybercrime, which you can find by searching ‘Cyber Aware’.
Chief Executive and First Permanent Secretary – HMRC
Originally published by HMRC