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Parental child leave

HMRC have updated the guidance for the Self-Employment Income Support Scheme (SEISS). for self-employed parents who did not submit a tax return for 2018/2019, or whose trading profits in 2018/19 were less than their other income, and were therefore ineligible for the SEISS, because they were taking time out of their trade to care for their new-born or newly adopted child (i.e. within 12 months of the birth of the child or within 12 months of an adoption placement). They will be able to claim for the SEISS, as long as they meet the other standard eligibility criteria, using either their 2017-18 or both their 2016-17 and 2017-18 self-assessment returns as the basis for their eligibility and grant calculation. Those who have become eligible can make a claim for the first SEISS grant, the second SEISS grant, or both (depending on when their businesses may have been adversely affected by Covid-19) when applications for the second grant open in August. This amendment brings these individuals into eligibility for the scheme. It does not affect the grant calculation for those who submitted a 2018/19 return and were already eligible.

Eat out to Help Out – guidance published

During August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered.

VAT announcements – guidance published

The reduced rate of VAT for hospitality, accommodation and attractions.

A  Revenue and Customs Brief and associated VAT Notice for this measure has been published. Guidance is also available aimed at smaller businesses and attractions.

        Job Retention Bonus – guidance published

This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021. The bonus will provide additional support to retain employees. To be eligible, employees will need to:

·         earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January

·         have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme

·         have been continuously employed up until at least 31 January 2021.
Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received. More information about this scheme will be available by 31 July and full guidance will be published in the Autumn. https://www.gov.uk/government/publications/a-plan-for-jobs-documents

CJRS – key dates Claiming for employees furloughed on or before 30 June

·         You or your clients need to claim by 31 July for employees furloughed through the Coronavirus Job Retention Scheme (CJRS) for periods ending on or before 30 June.

·         Get ready for changes from 1 August

·         Employers will no longer be able to use a CJRS grant to cover National Insurance (NI) and pension contributions for furloughed employees from 1 August. You or your clients can submit August claims in advance, from 20 July.

Working out your claims

You or your clients can use our online examples and calculator to help work out what you can claim, for claims ending on or before 31 July. From 10 July you will also be able to use these to help you work out claims ending on or before 31 August. Search for ‘calculate how much you can claim using the Coronavirus Job Retention Scheme’

Made a mistake on your claim?

You or your clients can now delete a claim online within 72 hours of submitting it. Search ‘claim for wages through Coronavirus Job Retention Scheme’

Calls to customers

HMRC are contacting selected employers to discuss their claims. These calls will be to check they haven’t made any mistakes and to help make sure they’re claiming the correct amount.

The CJRS guidance was updated on Friday afternoon last week. The table below details the changes;

Page title

Changes

All Pages

·         Call out box to be updated on 08/07/2020 to reflect announcement of Job Retention Bonus. The Job Retention Bonus was announced on 8 July. More information can be found in the government’s Plan for Jobs.

1

Check if your employer can use the Coronavirus Job Retention Scheme (Employee Page)

·         Added wording to ‘while you are on furlough’ section to make clear that your employer can continue to claim for you while you are serving a statutory notice period.

2

Check if you can claim for your employee’s wages through the Coronavirus Job Retention Scheme

·         Adjusted text to add clarity to ‘Paying employee taxes and pension contributions.’

·         Added wording to section on employee rights to make clear that you can continue to claim for a furloughed employee who is serving a statutory notice period.

3

Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

·         Structural changes

·         section on claiming for individuals who are not classed as employees moved to new separate page that will be linked to.

·         page content restructured under revised headings for a more logical layout.

·         Added wording to section on redundancy to make clear that you can continue to claim for a furloughed employee who is serving a statutory notice period.

4

Steps to take before calculating your claim using the Coronavirus Job Retention Scheme

·         Wording added to make clear that HMRC will not decline or seek repayment of any grant based solely on the particular choice between fixed or variable approach to calculating usual hours, as long as a reasonable choice is made.

5

Calculate how much you can claim using the Coronavirus Job Retention Scheme

·         Adjusted wording to reflect that the calculator can now be used to calculate what you can claim for in a claim period ending on or before 31 August.

·         Wording around the full calculation example improved and includes link to new full example for August.

·         Wording added to section on ‘working how much you can claim for employer NICs’ clarifying steps to take if your employee’s pay period goes beyond 30 June.

6

Claim for wages through the Coronavirus Job Retention Scheme

·         Wording added to support new functionality that allows users to delete a claim up to 72 hours after they have made it. (Published in support of service 02/07/20)

·         Wording relating to what you must use the grant for in ‘after you have claimed’ section adjusted to add clarity.

·         Detail on information needed if claiming for 100 or more employees improved and aligned with section above.

·         Wording added to reflect that we are developing a process to recover overclaimed grant amounts through the tax system.

7

Reporting employees’ wages to HMRC when you’ve claimed through the Coronavirus Job Retention Scheme

·         Adjusted the wording to make clearer that both employee and employer National Insurance contributions have to be paid to HMRC on the full amount.

8

Changes to the Coronavirus Job Retention Scheme

9

Examples of how to calculate your employees’ wages, National Insurance contributions and pension contributions

10

Full Calculation Example

·         Introduction text and layout tweaked

·         New full example included for August in support of calculator update.

11

Pay Coronavirus Job Retention Scheme grants back

12

Individuals you can claim for that are not employees

·         This is a new page has content which was removed from ‘check which employees’ about the eligibility ‘individuals that are not employees’ that is not frequently needed and so can be separated out to reduce the length of core page.

Self Employment Income Support Scheme – update

The application process for the second SEISS grant opens on 17 August. You can read more about the extension to the scheme on https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#extension

HMRC is preparing to reach out to newly eligible reservists to invite them to claim their grants if they meet the criteria for SEISS. Newly eligible parents will be able to provide evidence to support their claim using an online form in August.

There is a new scam. You will receive some seeds from abroad. Do NOT follow up. Do not call the number. Destroy the seeds.

Kind regards

Howard

Howard Gross BFP FCA FCCA CTA