Please note below important deadlines in respect of SEISS and Tax Returns.
Self Employed Income Support Scheme (SEISS)
Please note that the deadline to claim the third grant is 29 January 2021
As advised in our Briefing dated 7th November 2020, the Chancellor announced two additional taxable grants payable for the three months from I November 2020 to 31 January 2021 (third grant) and from 1 February 2021 to 30 April 2021 (fourth grant).
In respect of the third grant:
· Only those eligible for the first and second grants will be eligible for this third grant.
· You must be a self-employed individual (or a member of a partnership), with trading profits of up to £50,000 per year and whose trading profits are at least equal to your non-trading income.
· You must have traded in the tax years 2018-2019 and 2019-2020.
· Your 2018-2019 Tax Return must have been submitted before 23 April 2020.
· To make a claim for the third grant, businesses must have had a new or continuing impact from Coronavirus between 1 November 2020 and 29 January 2021.
· The grant payable is the lower of:
o 80% of average monthly trading profits, covering a three month period, calculated as for the first grant.
· The grant is subject to Income Tax and National Insurance.
· You will need to declare that you:
o Intend to continue to trade, and
o “Reasonably believe” there will be a “significant reduction” in your trading profits for the accounting period, due to:
§ Reduced business activity, capacity or demand, or
§ Inability to trade due to Coronavirus
If you are currently trading but have reduced demand, you must keep evidence to support this fact at the time of your claim. Examples may include:
· Business Accounts showing a reduction in activity compared to previous years;
· Records of reduced or cancelled contracts or appointments;
· Fewer invoices
· A record of dates where you had reduced demand or capacity due to Government imposed restrictions.
If your business is temporarily unable to trade, you must give evidence such as:
· A record of dates where you had to close due to Government restrictions;
· NHS Test and Trace communications: if you’ve been instructed to self-isolate in-line with NHS guidelines and are unable to work from home (if you have been abroad and have to self-isolate, this does not count);
· A letter or email from the NHS asking you to shield;
· Test results if you have been diagnosed with Coronavirus;
· Letters or emails from your child’s school if you have had parental caring responsibilities;
If you had to close before 1 November 2020 and continued to be closed for a period of time up to 29 January 2021, you can still claim as long as you are eligible.
HM Revenue & Customs have provided a number of examples of reduced demand, or inability to trade, which can be found at the link below:
In order to make a claim, the information you will need is:
· Ten digit self-assessment Unique Taxpayer Reference (UTR).
· National Insurance number.
· Government Gateway user ID and password.
· UK bank details (where a Bacs payment can be accepted) including:
o Bank account number.
o Sort code.
o Name on the account.
o Address linked to your bank account.
Taxpayers must make the claim directly. If Tax agents or advisers claim on behalf of clients this will trigger a fraud alert, which will delay payment. However, if you need any assistance before making the claim, then please contact us.
Details must be kept of:
· The amount claimed.
· The grant claim reference.
In respect of Partners, please note that:
· Each partner in a partnership must make a claim based on their own circumstances.
· HMRC will work out eligibility based on your share of the partnership’s trading profits.
· If the partnership agreement requires the grant to be paid into the partnership pot, the partnership should give it back to you.
If you are a new parent then:
· If you are already eligible for the grant based on 2016-17, 2017-18 and 2018-19 Tax Returns, the grant amount will not change.
· New parents may be able to make a claim if having a new child either:
o Affected the trading profits or total income reported for the tax year 2018-19, or
o Meant they did not submit a Tax Return for the tax year 2018-19.
The Government are still to assess the level of the fourth grant (1 February 2021 to 30 April 2021) and will provide further information in due course.
Self-Assessments and Tax Liability
As you can imagine, the logistics of getting Tax Returns finished has been a nightmare this year and we know that in some areas the post is being delayed as there are Coronavirus outbreaks in the sorting offices.
Therefore, if you have not received your Tax Return ‘pack’ by this Friday (29 January), then we will be in touch by telephone, if it is completed, but not yet submitted.
You will be re-advised of any Tax payable (but please remember Time to Pays can be arranged if you have not already done so, should funds not be available). There is more information about this below, but please contact your clerk regarding this.
We will request email authorisation from you to submit.
For anyone who has had their ‘pack’ of the Tax Return and any associated Accounts (if applicable), below are the details in respect of the payment of Tax:
Payments can be made by online banking or telephone banking using account number 12001020 sort code 08-32-10 and reference (your 10 digit Unique Tax Reference Number). Alternatively you can send a cheque made payable to HM Revenue & Customs only (your 10 digit Unique Tax Reference Number) to HMRC, Bradford, BD98 1YY or by debit card over the internet www.tax.service.gov.uk/pay-online/self-assessment and follow the guidance.
Your Unique Tax Reference number is on the front page of your Tax Return, however, if you are having problems locating this, then please do call us.
We have JUST received correspondence from HM Revenue & Customs in respect of the filing deadline of 31 January 2021. HMRC has announced that Self-Assessment customers will not receive a penalty for filing their 2019-20 Tax Return late, as long as they file online by 28 February. However, HMRC are still encouraging customers who have not yet filed to do so by 31 January, if possible. They state:-
Customers still need to pay their Self-Assessment Tax bill by 31 January. Interest will be charged from 1 February on any outstanding liabilities. Customers can pay online, or through their bank, or by post before they file.
Don’t you love it, how they call us all customers!
If anyone cannot afford to pay by 31 January, they may be able to set up an affordable plan and pay in monthly instalments. But they will need to file their 2019-20 tax return before setting up a time to pay arrangement.
More information is available on GOV.UK.
Please note that our firm are continuing to work towards the deadline of 31 January and wish to try to get as many of our client’s Tax Returns filed by this date as there is still the payment deadline.