Round up of Personal Tax Announcements 11/05/20

Keep up to date with the key announcements made this past week.

In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week.

HMRC Guidance on job retention scheme

HMRC has updated its guidance  with various changes on the job retention scheme. A new section for maternity allowance has been added, providing details on how this affects eligibility for the CJRS. Also, additional links have been added to the apprenticeship learning arrangements for England, Scotland, Wales and Northern Ireland, the shared parental pay guidance and the webinar help and support page for businesses affected by coronavirus.

Other changes have been made to the guidance  on how to calculate 80% of employees’ wages, to include addition of the daily maximum wage amounts for June 2020, exclusion of employees with an annual pay period when using the calculator and information for company directors. Sections on employees returning from family-related statutory leave, sick leave and the employer National Insurance contributions have also been clarified.

Self-employment income support scheme (SEISS)

HMRC has updated its guidance  on the SEISS with more information on who can claim the grant and how different circumstances can affect the scheme. HMRC has also included information on how state aid could affect claims and the impact of claiming the grant on all work visas. Information has also been added to the new online tool to find out if an individual is eligible to make a claim. Once a claim is submitted, the claimant will be told straight away if the grant is approved. The grant will be paid into the claimant’s bank account within six working days.

Additional examples  have been added to show how HMRC works out total income and trading profits for different trading circumstances. Examples have also been added to show how HMRC works out partnership eligibility and the grant available. In addition to this, HMRC has published new guidance on how different circumstances affect eligibility for the SEISS.

The legal framework  of the SEISS was published this week also. This confirms that HMRC is responsible for the payment and management of amounts to be paid under the SEISS.

Tax Credits
HMRC has published guidance  to confirm that people who cannot work their normal hours because of coronavirus will still receive their usual tax credits payments. This applies to those working reduced hours due to coronavirus or those being furloughed by their employer, provided that they are still employed or self-employed. Such customers need not contact HMRC about this change but can still report any other changes in income, childcare and hours in the normal way. However, HMRC will need to be informed if the individual claiming the tax credit or their partner loses their job, is made redundant or ceases trading.

Lifetime ISA
An announcement  has been made in connection with changes to the lifetime ISA (LISA) rules in response to the challenges brought about by the coronavirus outbreak. For any withdrawals made between 6 March 2020 to 5 April 2021, the withdrawal charge will be reduced to 20% (from 25%). This reduction, announced on 1 May, is backdated to 6 March. Those who have withdrawn their money since 6 March 2020 and thereby paid a 25% charge will have the difference refunded.

Report and account for your disguised remuneration loan charge
HMRC has updated its guidance  on reporting and accounting for a disguised remuneration loan charge, specifically the section on how to report a disguised remuneration loan regarding the spreading of the tax charge over three years.

Reporting and paying CGT on UK property
HMRC has issued new guidance  dealing with how to ask a client for authorisation to manage their CGT on UK property account.

Due to the coronavirus pandemic, late filing penalties will not apply on disposals of UK residential property completed on or after 6 April 2020 and before 1 July 2020 and reported up to 31 July 2020. Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 calendar days, and interest will be charged if the tax remains unpaid after 30 days for all transactions from 6 April 2020.

Zero-rating for personal protective equipment (PPE)
An immediate temporary zero-rating has been announced  for supplies of PPE in response to the coronavirus pandemic. The zero-rating will apply to supplies of PPE made between 1 May and 31 July 2020 (including relevant imports ) that are recommended for use by Public Health England in its guidance .SI 2020/458VATA 1994, Sch 8 Grp 20

Products covered by the temporary zero-rating include:

  • •disposable gloves
  • •disposable plastic aprons
  • •disposable fluid-resistant coveralls or gowns
  • •surgical masks ― including fluid-resistant type IIR surgical masks
  • •filtering face piece respirators
  • •eye and face protection ― including single or reusable full-face visors or goggles

Source – Lexis Nexis via Tolley Guidance