SEISS grants overpayments chased by HMRC HMRC is now contacting taxpayers who received more SEISS grants than they were entitled to. Taxpayers may repay a partial amount, or repay their grants in full, with the option to appeal within 30 days. HMRC is examining the SEISS claims and comparing them to amended returns. Indeed including
Government announces £1bn support package for businesses affected by Omicron The Chancellor has announced a £1bn support package for businesses hit hard by Omicron. Businesses within the hospitality and leisure sectors in England will be able to claim one-off grants of up to £6,000. It was recently revealed that hospitality businesses have seen a steep
UK tax officials have seized £26.5m from non-existent businesses run by an ‘entrepreneur’ who used the Coronavirus Job Retention Scheme to make fraudulent claims. According to the Financial Times, the ‘entrepreneur’ who is believed to be a 44-year-old man, used four companies to create seven fake employees to gain access to furlough funds. To
In April 2020, the government announced a temporary tax break for those working from home, as an effect of the coronavirus pandemic. Although many workers are now returning to the office, you can still claim tax relief for working from home this tax year, even if it was just for one day. Depending on
Applications for the fifth SEISS grant are open for online submissions. All those who are eligible for the fifth SEISS grant and wish to make a claim, must do so before the scheme closes on 30 September 2021. Eligibility criteria Eligibility will be the same as for the fourth grant and will be based on
With most restrictions ending in England, the furlough scheme continues to phase out from 1 August 2021. From this date, employers will be required to contribute more towards their employee’s wages for hours not worked. How much will employers contribute from 1 August? From 1 August to 30 September 2021, employers will be required to
Earlier this month, the Stamp Duty Land Tax (SDLT) holiday began to phase out. From 1 July 2021, the SDLT NIL rate was lowered from £500,000 to £250,000 on residential homes. The Stamp Duty Land Tax holiday will now only apply to residential homes costing £250,000 or less. The government introduced the holiday in June
The fifth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from mid-late July. Despite the fifth grant encompassing a five-month period from 1st May to 30th September, individuals will only receive three months’ worth of average trading profits for this five-month period. Eligibility critieria Eligibility will be the same as for
The Financial Times has obtained data through a freedom of information act (FOI) request, which states that companies have repaid £709m from furlough claims that have been made under the Coronavirus Job Retention Scheme (CJRS). According to the data, an additional £319m has been reclaimed from companies that had mistakenly claimed the incorrect amount. As
Since the introduction of the furlough scheme back in March 2020, more than £60 billion has been claimed through the furlough scheme. Whilst the furlough scheme has been used to protect over 11 million jobs, there have been instances where the scheme has been exploited. Last month a couple from Yorkshire were arrested as part
Furlough Scheme – When do employers need to contribute? The furlough scheme was announced in 2020 as a means for employers to retain their staff during COVID-19. Under the furlough scheme, employees currently receive 80% of wages for hours not worked, up to a total of £2,500 a month. However, this is set to change
The fourth Self-Employment Income Support Scheme grant, which opened for claims in mid-April, covers 80% of three months’ average trading profits from 1 February 2021 to 30 April 2021. The grant will be capped at £7,500. Claims for the fourth SEISS grant must be made on or before 1 June 2021. To make a
The furlough scheme has been a lifeline for many businesses during the pandemic. Under the scheme, employees receive 80% of wages for hours not worked, funded by the government. Since the phased reopening of the economy in April last month, some businesses have been able to repay some, or all of the money claimed through
During the first nine months of the coronavirus pandemic, HMRC received more than 91,000 calls to their fraud hotline. Many reports are believed to be in relation to furlough fraud. Between April and December 2020, HMRC received around 10,000 calls on average each month. This is up from the monthly average of 9,000 the year
In April 2020, the government announced a temporary tax break for those working from home. The tax break allows for employers to pay their workers up to £6 a week tax-free to cover additional costs incurred for working from home. If an employer chooses not to pay their staff the £6 a week, workers can
Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. From July 2021, employers will be required to contribute towards their employees
The fourth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from late April. HMRC has confirmed it will be contacting those self-employed workers who are eligible for the fourth grant, by either email, letter or within the online service. Eligibility will be based on the individuals tax returns. There are no
Earlier this month, HMRC launched a new taskforce of 1,250 staff to investigate fraudulent furlough claims and Eat Out to Help Out claims. Investigators will be cross-referencing claims under the furlough scheme with other records, such as the Eat Out to Help Out scheme. As part of HMRC’s investigations, a number of businesses have been
The furlough scheme has been a lifeline for businesses of all sizes throughout the coronavirus pandemic. However, many have exploited the furlough scheme by making fraudulent claims or failing to review their initial claim. According to HMRC data, mid-sized businesses claimed £9.49 billion through the furlough scheme, as of 31st January 2021. Research has found
Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. Unfortunately, furlough fraud has proven to be a widespread issue over the
Earlier this month, the government introduced the Restart Grant Scheme to support businesses in reopening, once COVID-19 restrictions are lifted. Eligible non-essential retail businesses may be entitled to a one-off grant of up to £6,000 Eligible businesses within the hospitality, leisure, accommodation, personal care and gym sectors may be entitled to a one-off grant of
As the government announced an emergency extension to the ‘loss carry back’ rules in the Budget earlier this month, thousands of small business owners who have lost money, due to the coronavirus pandemic, can claim more than £1bn in tax rebates. Businesses now have the option to claim back profit and income taxes paid over
Chancellor Rishi Sunak confirmed, in last week’s Budget announcement, further details for the fourth Self-Employment Income Support Scheme (SEISS) grant. The grant will allow those who are self-employed, whose business and income has been effected by the coronavirus pandemic, to claim support from the government. The fourth SEISS grant will be available to claim through
HMRC will be writing to 100,000 taxpayers who became newly self-employed in 2019/20. HMRC aims to protect the Self-Employment Income Support Scheme from fraud and will therefore ask these taxpayers to complete a pre-verification check. Taxpayers will be asked to confirm their identity as well as providing evidence of trade. Selected taxpayers will receive a
Chancellor Rishi Sunak is set to announce the latest details for the fourth Self-Employment Income Support Scheme (SEISS) grant, in the upcoming Budget on 3rd March 2021. The grant will take into account self-employed worker’s earnings from February to April 2021. The government has spent £13.7billion on SEISS grants since the pandemic began in March
HMRC has recently published a list of employers who have made a claim under the Coronavirus Job Retention Scheme. The list represents those employers who have claimed for periods in December 2020. As of February 2021, HMRC will publish a list of employers claiming under the scheme along with an indication of the value being
Many are facing higher tax bills this year as deferred bills from last year are beginning to catch up, this has resulted in taxpayers accumulating £4bn in debt with HMRC. The coronavirus pandemic has had a lasting effect on the UK economy, with many people out of work and businesses being forced to temporarily close.
The furlough scheme was launched in March 2020 in an effort to minimise job losses during the coronavirus pandemic. Under the scheme, employees will receive 80% of their wages, up to a total of £2,500 a month, off the government. At its peak in May last year, the furlough scheme was supporting 8.9 million jobs.
The UK government recently introduced an Income Tax exemption on coronavirus antigen tests for employees. The tax exemption came into effect on 8th December 2020 and is expected to end on 5th April 2021. The Association of Taxation Technicians (ATT) is calling for the tax exemption to be extended beyond 5th April 2021. The current
Following Boris Johnson’s announcement of a third national lockdown in England, the Chancellor has announced further grants totaling £4.6 billion. A one-off grant worth up to £9,000 per property, will be available for those businesses in the retail, hospitality and leisure sectors, who have been affected by the latest coronavirus restrictions. Around 600,000 properties are
The UK Government has confirmed the Coronavirus Job Retention Scheme will be extended until the end of April 2021. The scheme was set to expire at the end of March 2021 but has now been extended for another month. Under the scheme, the government will continue to pay employees 80% of wages for hours not
The new Income Tax exemption came into effect from 8th December 2020 in relation to employers providing their employees with a coronavirus antigen test. This new temporary exemption will ensure that employees who are given a relevant coronavirus antigen test, will not be liable to an Income Tax benefit in kind charge. A benefit in
The government has extended the temporary 5% reduced VAT rate. The temporary rate was originally planned to end on 12th January 2021 however, it has now been extended to 31st March 2021. These changes have been introduced in response to the Covid-19 pandemic to support those businesses affected most. The extension of the 5% reduced
HMRC has updated its guidance on the information published for employers who make a claim under the Coronavirus Job Retention Scheme (CJRS) from 1st December 2020. HMRC is providing this information in the hope that it will deter fraudulent claims. The new guidance includes the information that HMRC will publish on employers who claim under
HMRC have issued guidance on penalties that might be incurred where there is failure to notify of an overpayment made under certain coronavirus support schemes, the following schemes are included: Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme and Eat Out to Help Out Scheme. Failure to notify if you have received a coronavirus support
Businesses can claim back employees Statutory Sick Pay if they have been absent due to the coronavirus. A claim can be made for up to two weeks of an employee’s statutory sick pay if they have been absent for reasons relating to the coronavirus. Businesses can only claim if the following criteria are met: Employees
The government’s working from home tax relief has been reviewed due to the coronavirus pandemic. With more people being required to work from home due to local restrictions and national lockdowns, HMRC have updated their system to allow people to claim the entire tax year, regardless of the period of time spent working at home.
The government introduced the Eat Out to Help Out scheme in August which offered 50% discount of up to £10 per person. The aim of the scheme was to boost the economy after the national lockdown by allowing businesses in the hospitality sector to offer discounted meals on Mondays, Tuesdays and Wednesdays. Whilst this scheme
In an announcement today, Chancellor Rishi Sunak confirmed the Furlough Scheme will be extended until the end of March 2021. The government will pay employees, who are on the Furlough Scheme, 80% of their wages however, employers are still expected to make contributions to National Insurance and pensions for hours not worked. The scheme is
Following on from Boris Johnson’s announcement to extend the Furlough Scheme through until December, it has been further announced that the Self-Employment Income Support Scheme grant will also be extended. The scheme will last for 6 months from November 2020 to April 2021 with grants being paid in two instalments, each covering a three month
England is preparing to face another national lockdown following Boris Johnson’s announcement over the weekend (31st October ). The PM addressed the nation telling people they must stay at home from 5th November until 2nd December, when rules will be reviewed. All non-essential shops along with bars and restaurants will have to close however, schools
Following the Chancellor’s announcement regarding the Job Support Scheme, a Policy paper has been published by the government to provide additional information about the scheme. The scheme is designed to help protect jobs in businesses where demand is expected to fall during the coming winter months due to the coronavirus. There are two different types
The Chancellor Mr. Rishi Sunak has delivered his latest economic statement. In his announcement, The Chancellor began by acknowledging the frustration of those living in Tier 3 local lockdown areas. He then reiterated that the treasury have a plan to save jobs and backed the Prime Minister’s local lockdowns. Sunak announced the further steps he
Given the ongoing coronavirus pandemic a number of UK office workers have now been working from home for periods of up to 6 months, and for some this looks set to continue long into the future. Employees should be alert to possible tax allowances they could receive as a result of this lengthy stint working
From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers. What is changing? For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50
The Association of Tax Technicians have announced that HMRC issued the first wave of Coronavirus Job Retention Scheme (CJRS) compliance letters last week. The action comes as HMRC moves past it’s transaction review phase of the scheme. The initial set of letters, which were due to arrive on doormats from 18th August, will be asking
Job Retention Bonus Clarification for Employers Following the announcement during the summer economic update by the Chancellor, Rishi Sunak, HMRC have published a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. Employers will be able to claim for employees who: Were furloughed and had a Coronavirus Job Retention
Whenever any financial incentive or support is made available, scammers and fraudsters try their best to infiltrate the scheme and cheat the system in order to receive funds designed only for those in need of them. The Coronavirus Job Retention Scheme (CJRS) or ‘Furlough Scheme’ is no exception. The Coronavirus Job Retention Scheme The Coronavirus
The guidance on the CJRS has been updated, and new guidance has been published for calculating claims. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the end of the scheme. A policy paper has been published by HMRC outlining changes to
On Friday 29 May, the Chancellor, Rishi Sunak, announced the gradual phasing out of the Coronavirus Job Retention Scheme (CJRS) with its complete conclusion set to take place on 31 October 2020. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the
Chancellor Strengthens Businesses Position on Interruption Loan On 3 April the Chancellor, Rishi Sunak, gave a boost to businesses aiming to utilise the Coronavirus Business Interruption Loan Scheme (CBILS). Banks have been requesting personal guarantees for loans taken out through the CBILS, Sunak has now taken the decision to ban that requirement. The government is
In the current emergency, anything that potentially reduces outgoing cash flow, including impending tax due dates for payment, is welcome. We have therefore outlined, opportunities within the current tax system that businesses should not overlook. Tax Deferral – HMRC Announcements Second Payment on Account instalment due on 31 July 2020 HMRC have confirmed that the
We have received a vast number of queries around how businesses should manage communications with HMRC and which lines of communications they should use, keeping in mind the new COVID-19 restrictions. The lockdown put in place by the government, aimed at slowing down the coronavirus spread, means that HMRC offices are closed. No physical letters
The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. It is expected that the scheme will be up and running by the end of April. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).
Tonight, Chancellor Rishi Sunak announced support for the self-employed. The scheme introduced is aimed to assist 95% of those who are currently self-employed. As stated during the chancellor’s briefing, the Government will pay those who are self-employed a grant of 80% of their average monthly profits over the last 3 years – up to a
Following on from the raft of announcements over the past few weeks, we appreciate that many individuals are struggling to keep up with all of the new updates. In this article we will provide a brief outline of the relevant announcements made for small and medium enterprises. Business Interruption Scheme Provides loans through the British
Given the Governments insistence for those who can work from home should do so, a large number of employed individuals will suddenly be working from home. Workers may be able to claim tax reliefs for the extra household costs associated with working from home. For instance for extra telephone bills, electricity and gas. HMRC accepts that
The latest in a long list of these scams appears to be related to Tax rebates due to Coronavirus. HMRC tweeted on Saturday to warn taxpayers of the latest scam, stating; “We are aware of emails claiming to be from HMRC offering tax rebates as a result of #coronavirus If you receive an email, text
