HM Revenue and Customs (HMRC) has issued a reminder to ensure that companies include these when submitting tax returns.

If you are unsure whether the grant your company received falls in this category, HMRC has provided a list of the following grants that are taxable:

• test and trace or self-isolation payments in England, Scotland and Wales
• Coronavirus Statutory Sick Pay Rebate
• Coronavirus Business Support Grants (also known as local authority grants or business rate grants)

Payments that fall within these categories should be classified as income for calculating taxable profits, when completing the tax return.

However, companies that received grants related to the Coronavirus Job Retention Scheme (CJRS) or Eat Out to Help Out will also be required to record them on the Company Tax Return using the specified CJRS/ Eat Out to Help Out boxes.

Be aware of the deadlines

For filing company tax returns (CT600), the deadline is 12 months following the end of the accounting period covered.

Whereas for Corporation Tax, the submission deadline is dependent on any taxable profits as well as when the accounting period ends.

Self-Assessment tax returns for the tax year 2020/2021, as well as any tax owed, are due on 31 January 2022.

However, HMRC has recently announced that customers would be granted an extra month to file and pay any tax due before penalties are incurred, in response to the impact of coronavirus.

Further guidance on how to complete and submit your company’s tax return can be found here.

For advice and support, contact our expert team today.

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Although this announcement was expected, and details of it widely publicised beforehand, here is what you need to know:

• The return of work from home guidance – From Monday (13 December), office workers should work from home, where possible, to reduce the number of people they come into contact with. Anyone who cannot work from home, due to the requirements of their employment, should continue to go into work.

• Mandatory Covid-status certificates in certain settings – From next Wednesday (15 December) ‘Covid passports’, demonstrating that a person has been vaccinated and taken a negative lateral flow test, will be required to enter some indoor and larger outdoor venues, including:
• nightclubs
• unseated indoor events with more than 500 attendees
• unseated outdoor events with more than 4,000 guests
• large outdoor events with crowds of more than 10,000 people.

A full list of conditions for this requirement can be found here.

• Mandatory face coverings in more locations – From 9 December, the rules on face coverings will be extended to hospitality venues, such as cinemas, theatres and places of worship. However, they won’t be needed in places “where it is not practical to wear one”, like when eating, drinking or exercising.

At present, the Government hasn’t given any indication of additional financial support to help businesses with these rules.

However, these new measures for England are much less stringent than those announced last winter and many similar rules are already in place in Scotland, Wales and Northern Ireland.

While certain industries may experience a greater impact due to these changes, early indications are that the wider economy should be less affected due to the preparedness of many businesses.

Here for you

It is understandable, given the events of the last few years, that you may have concerns about the latest restrictions.

We just want to reassure you that whatever happens we are here and ready to offer our support, so let us know if you have any concerns.

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Although much of the COVID-19 financial support has been withdrawn, the Government still wants businesses to access funding to aid their recovery.

That is why the Chancellor, Rishi Sunak, has extended the Recovery Loan Scheme until 30 June 2022 – instead of it ending on 31 December this year.

Intended to bridge the gap between the previous Coronavirus loans and regular credit conditions, the Recovery Loan could be worth up to £10 million per business, or up to £30 million across a business group.

However, as part of the extension to this scheme, certain criteria will change from 1 January 2022, including:

• The scheme will only remain open to small and medium-sized enterprises
• The maximum amount of finance available will decrease to £2 million, per business
• The Government guarantee offered to lenders will fall from 80 per cent to 70 per cent.

To apply for the Recovery Loan Scheme, businesses need to check the list of accredited lenders on the British Business Bank’s website here.

Not sure if you are eligible or need help making an application?

Speak to us for assistance

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There is growing concern that we are heading towards another spike in infections and a move to Plan B – what does this mean for you?

What is Plan A? 

We are currently in Plan A. This strategy focuses on limiting the spread of COVID by:

• Ensuring as many people as possible are vaccinated
• Maintaining track and trace systems
• Providing additional support to the NHS and social care.

What is Plan B? 

Plan B would attempt to prevent a further rise in COVID hospitalisations and deaths.

This strategy could include the following measures:

• Communicating “clearly and urgently” with the public that the risk level has increased
• ‘Vaccine passports’ for entry to some indoor events and venues
• The return of mandatory face coverings in some indoor spaces
• Recommendations to work from home
• The public going “out of their way” to support and help the health service
• Recruiting NHS volunteers and encouraging retired healthcare workers to re-enter the health service.

The Government has not confirmed that it intends to bring in any of these measures but it is under pressure from the NHS and other experts to implement these restrictions before rates rise drastically.

Are you likely to be affected? 

While the new measures are by no means as strict as earlier lockdowns, they could affect how some businesses operate and elements of your daily life.

If you are concerned about the business implications please contact us.

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If you fail to submit your claim in time, it will not be processed 

Claim now

Those eligible to make a claim for the fifth SEISS grant need to:

• Apply on or after their personal start date given to them by HMRC
• Tell HMRC that they intend to carry on trading in 2021/22
• Reasonably believe there will be a significant reduction in their trading profits between 1 May and 30 September 2021 due to the pandemic.

Don’t forget the turnover test!

Following changes to the SEISS, there are two levels of grant available, which are dependent on your turnover.

This ensures that those whose turnover fell by:

• 30 per cent or more will continue to receive a grant worth 80 per cent of three months’ average trading profits (capped at £7,500).
• Less than 30 per cent will receive a reduced grant equal to 30 per cent of three months’ average trading profits (capped at £2,850).

The figures used in this calculation are not profit but rather gross sales for all concurrent trades. All COVID-related grants received should be excluded from your turnover figure.

Here to help

While we cannot complete the fifth SEISS application on your behalf, we are happy to provide advice on your turnover.

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The analysis comes ahead of the furlough scheme closing at the end of this month.

The initiative – which forms part of the Government’s Plan for Jobs – supports businesses affected by Covid-19 by paying a percentage of employees’ wages while they are unable to work.

During the months of August and September, employers have been required to contribute 20 per cent of earnings, while the Government has contributed 60 per cent.

Employers can choose to top up wages to 100 per cent, but it is not necessary to do so.

The latest statistics show that some £68.5 billion has been spent on the furlough scheme to protect the livelihoods of 11.6 million workers so far.

The CJRS, which has been in operation since March 2020, will close on 30 September.

Commenting on the success of the scheme, Thérèse Coffey, Secretary of State for the Department for Work and Pensions, said: “Our multi-billion pound Plan for Jobs is working, getting tens of thousands of people back into employment but also going further by helping workers boost skills, earnings and prospects.”

The figures also reveal that self-employed people and small business owners claimed a combined 9.9 million Self-employment Income Support Scheme (SEISS) grants, worth a total £27 billion, throughout the pandemic.

Workers can now claim the fifth grant, but only if they pass the new “turnover test”. This requires self-employed workers to compare turnover figures for two tax years to prove that they have lost income as a result of the pandemic.

For help and advice with related matters, please get in touch with our team today.

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The Government said the Cyber Runway scheme will help start-ups, small businesses and scale-ups access business masterclasses, mentoring, product development support, and backing to “trade internationally” and “secure investment”.

The initiative will be funded by the Department for Digital, Culture, Media and Sport (DCMS), but will be delivered by leading private institutions, including The Centre for Secure Information Technologies (CSIT).

According to the report, up to 160 start-ups operating in the cyber industries will be supported over the next six months.

Commenting on the scheme, Minister for Digital Infrastructure Matt Warman said: “Our new Cyber Runway programme will help tackle barriers to growth, increase investment and give firms vital support to take their businesses to the next level.

“The programme will also support founders and innovators from a diverse range of backgrounds – targeting applicants from underrepresented groups in the UK’s cyber sector such as women and people from black, Asian and minority ethnic backgrounds.”

Louise Cushnahan, head of innovation at CSIT, added: “CSIT has a strong reputation for providing support to cyber startups through their various growth stages.

“We are delighted to bring our expertise to Cyber Runway to collaborate with cyber companies and entrepreneurs bringing innovative cyber solutions to market.”

The latest statistics suggest that the UK’s cyber sector grew by seven per cent in the last 12 months and is now worth an estimated £8.9 billion annually.

Click here to learn more about the Cyber Runway scheme.

For help and advice with related matters, please get in touch with our team today.

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Make a claim via the SEISS claims portal

Taxpayers can claim from their personal claim date up until the claims service closes on 30 September 2021.
Earlier this month HMRC published detailed guidance for the fifth round of the Self-Employment Income Support Scheme (SEISS), which confirmed the following:
Eligibility
To be eligible for the grant, an individual’s trading profits in 2019 to 2020 must have been no more than £50,000 and must have been at least equal to income from other sources.
Self-employed individuals must also confirm that they:

• Intend to continue to trade in 2021 to 2022; and
• Reasonably believe there has been a significant reduction in their trading profits due to reduced business activity, capacity, demand or inability to trade due to Coronavirus from May 2021 to September 2021.

They will also need to keep records of evidence that supports their declaration.
Turnover
Unlike previous rounds of the scheme, the fifth round of the SEISS will offer two levels of grant, depending on the impact Coronavirus has had on a self-employed individual’s turnover in a 12-month period beginning between 1 and 6 April 2020.
Those whose turnover fell by 30 per cent or more will once again be able to claim a grant worth 80 per cent of three months’ average trading profits, capped at £7,500 in total.
Meanwhile, those whose turnover fell by less than 30 per cent will be able to claim a grant worth 30 per cent of three months’ average trading profits, capped at £2,850 in total.
Self-employed individuals who have already completed their 2020 to 2021 Self-Assessment Tax Returns can find their turnover figures there, although they should not include anything reported as ‘other income’.
They should also be aware that this figure will only apply to a 12-month figure beginning on 6 April 2020 and turnover for a period beginning earlier in April 2020 could be different.
Previous SEISS grants, Eat Out to Help Out payments and local authority or devolved administration grants should not be counted towards turnover figures for the purposes of the scheme.
However, with 2020 to 2021 Self-Assessment Tax Returns not due until 31 January 2022, many self-employed individuals will not yet have completed a return. In these circumstances, HMRC advises that individuals should:

• Check their accounting software
• Go through bookkeeping or spreadsheet records that cover self-employment invoices and payments received
• Check the bank account they use for their business to account for money coming in from customers

This turnover figure should then be compared with the figure reported on a 2019 to 2020 Self-Assessment Tax Return to calculate the percentage fall in turnover during the year to April 2021 and reported to HMRC. Self-employed individuals can access their previous returns by accessing their personal tax account online.
Where 2019 to 2020 was not a normal trading year for a self-employed individual, they may use the turnover reported in their 2018 to 2019 Self-Assessment Tax Return. However, they must show how 2019 to 2020 was not a normal year.
HMRC gives the following examples of circumstances that might have meant 2019 to 2020 was not a normal year:

• Being on carers leave, long-term sick leave or having a new child
• Carried out reservist duties
• Lost a large contract
• Did not submit a 2019 to 2020 return for reasons that mean you are still eligible for a grant, such as having a new child.

Self-employed individuals who began trading in 2019 to 2020 and did not trade in any of 2018 to 2019, 2017 to 2018 or 2016 to 2017, may claim 80 per cent of three months average trading profits, capped at £7,500 in total, as long as they meet the other eligibility criteria.
In a slight change to the earlier guidance, for the purposes of the turnover test partners making a claim should use turnover for the partnership as a whole, except if they have another business (either a sole trade or partnership), in which case they use their share of partnership turnover when making the comparison.
The clarifies that the profit share rules apply only when the partner has multiple trades in either 2019/20 or the pandemic period.
Taxable treatment of the grant
SEISS grants are subject to Income Tax and National Insurance Contributions and must be included on a 2021 to 2022 Self-Assessment Tax Return. Grants are also counted toward annual allowances for pension contributions.
For help and advice, please contact us.

The post The fifth round of the Self-Employment Income Support Scheme (SEISS) is now open appeared first on Grunberg & Co.

• Work in ‘critical elements of national infrastructure’; and
• Their absence must be likely to result in the loss or compromise of this infrastructure; and
• Have a major detrimental impact on the availability, integrity or delivery of essential services; or
• Have a significant impact on national security, defence or the functioning of the state.

Affected employees will only be able to leave self-isolation to undertake critical work and must otherwise self-isolate.
The 16 sectors and appropriate Government departments are:

To qualify for an exemption, an employer must contact the appropriate department with information on the individuals they wish for it to apply to, their roles, and the likely impact of their self-isolation.
If agreed, the department will then write to the employer with the names of exempted employees. An exemption will only apply to employees whose employer receives such a letter that names them.
Other arrangements apply to workers in frontline health and social care roles and up to 500 workplaces in the food supply chain will be able to use daily testing instead of self-isolation from next week as part of a separate initiative.
Link:  https://www.gov.uk/guidance/nhs-test-and-trace-workplace-guidance

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