Harts CHARTERED ACCOUNTANTS

Business Grants Funds Programme Closure

30th Jul

The Chancellor and the Secretary of State for Business, Energy & Industrial Strategy have taken the decision that all three grant schemes, the Small Business Grants Fund, the Retail, Hospitality & Leisure Grants Fund and the Discretionary Grants Fund, should close by Friday 28th August.

Different local authorities are at different stages in terms of the phases of the grant they are offering and localised deadlines. Look at your local authority website for more details. Cheshire East is just opening a new phase on 31st July 2020 and Stockport are closing their final phase on the 7th August so do not delay!

Deferral of Self-Assessment Payment On Account

The second self assessment (SA) payment on account (POA) for 2020/21 is due on 31 July 2020, however, deferral is an option for those impacted by coronavirus.

HMRC’s guidance on deferring the second SA payment on account was updated on 8 July 2020.

HMRC’s guidance states that deferral is available to any SA taxpayer who is: “finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus”. This introduces a condition of the taxpayer’s ability to pay having been affected by the pandemic.

SA statements of account show the due date for the second payment on account as 31 January 2021. This is because HMRC has had to change the due date in its system to ensure that interest would not be charged where payment is deferred until 31 January 2021. However, this means that the statements give the incorrect impression that there is no condition to be met which is not the case.

The clock is ticking to claim or repay coronavirus grants

Self-employed individuals, and employers, have 90 days to inform HMRC that they have over-claimed the SEISS or CJRS grants and repay any excess before penalties apply.

If you are in this position contact us so we can advise.

Job retention scheme

For any claims for period up to 30/6 must be made by 31/7, this Friday, so ensure you take immediate action if your claim for furloughed employees has not been submitted yet.

Please note from the 1st August employers will no longer receive assistance from the government towards employers national insurance and pension costs for those staff who remain on furlough.

SEISS repayments

The self-employed income support scheme (SEISS) has always lagged behind the furlough grant scheme (CJRS), and the applications for the second SEISS grants will open on 17 August.

The HMRC guidance says it will work out if the trader is eligible for a SEISS grant and contact them to invite them the trader to apply. However, HMRC can’t check the three current-period conditions for the SEISS grant:

Whether the trade has been adversely affected by the Coronavirus pandemic

  • If the individual traded in 2019/20 (if the tax return for that year hasn’t been submitted)
  • Whether the trader intends to continue to trade in 2020/21

If any of those conditions are not met the SEISS grant has been incorrectly claimed, the trader needs to tell HMRC as soon as possible and repay the overpaid amount.

Penalties

If the taxpayer does not repay HMRC the amount of coronavirus support payment overclaimed, HMRC will raise an assessment of tax equals the overclaim (FA 2020, Sch 16 para 8). This assessment can be appealed.

Where the taxpayer fails to notify HMRC of the overclaimed coronavirus support payment within the 90-day period HMRC will impose a penalty under the failure to notify rules. The penalty is calculated at 30% to 100% of the overclaimed amount, for an unprompted disclosure, but will be set at 50% to 100% of the overclaimed amount for a prompted disclosure.

Thus, a taxpayer who is investigated by HMRC and is found to have incorrectly claimed a CJRS or SEISS grant will be required to repay 150% to 200% of those funds.

Cheadle Office is Now Open

Our Cheadle office is now open with restricted hours, please contact us before visiting.

However, Macclesfield Office remains open normal hours.

Get in Touch

Call or email us at Harts if you have any queries about topics covered above or to find out more about our services at Harts.

Call us on 01625 669669 or email info@harts-ltd.com