Back in December Chancellor Rishi Sunak announced he was extending the furlough scheme and Self Employed grants to the end of April 2021, giving certainty to millions affected by the pandemic.
Businesses also have until the end of March to access government-backed loans to keep them afloat during tighter trading restrictions.
Furlough (Coronavirus Job Retention Scheme – CJRS) – until the end of April, the government will continue to pay 80% of an employee’s salary; employers should cover NICs and pension for hours not worked. Employers are required to pay wages, pension and NICs for all hours worked.
Self Employed Income Support Scheme (SEISS) – a fourth grant will be available covering the 3-month period from February to April ’21. Details on claiming this 4th grant have not yet been announced but we advise taxpayers to file their 2019/20 tax returns by the 31 Jan ’21 deadline in the event HMRC uses this information in assessing the fouth grant.
The claims portal for the third grant is currently open and closes on 29th January 2021, providing a grant of up to 80% of average trading profits over a 3-month period, capped at £7,500. Taxpayers must meet the ‘significant reduction in trading profits’ test for the third grant. The rules for how to prove the business has suffered a significant reduction in trading profits aren’t entirely specified but taxpayers can use the previous year or an average of the last 3 years to show the business has suffered due to the Covid pandemic.
It is possible to claim the 3rd & 4th SEISS grants even if no previous claims have been made.
Says Julia Gallagher, tax partner at Curo “We welcome the extra support available for businesses and individuals affected by the Covid pandemic. We have been working throughout the pandemic with clients, ensuring they access the appropriate financial help and account for it in the correct way. We will be very interested to hear what is announced by the Chancellor in the Budget on 3rd March by way of changes to the tax system to fund the ongoing schemes”.
How Curo can help you
Things are changing frequently and quickly but HMRC still expects businesses and individuals to complete and submit accurate records by the given deadlines. We can explain the fast-changing rules and ensure you stay up to date & compliant with your tax records.
Please get in touch with [email protected] or call 01527 558539 to discuss your requirements in more detail.