HM Revenue & Customs waives late filing penalties for Self-Assessment taxpayers who file by 28 February – but payment deadline remains

HM Revenue & Customs waives late filing penalties for Self-Assessment taxpayers who file by 28 February – but payment deadline remains

HM Revenue & Customs (HMRC) has announced that any Self-Assessment taxpayers who miss the 31 January 2021 tax return deadline will not receive late filing penalties if they file online by 28 February 2021, although the 31 January 2021 payment deadline remains.

Taxpayers who do not pay any outstanding balance on their 2019-20 tax bill by 31 January 2021 will be charged interest from 1 February 2021.

Anyone who cannot afford to pay their Self-Assessment tax bill of up to £30,000 for 2019-20 can apply online for a 12-month payment plan, although this is subject to interest. HMRC can also be contacted on 0300 200 3822.

Meanwhile, anyone with a larger tax bill that they cannot pay or who needs longer to pay should seek advice or contact HMRC by calling 0300 200 3822 to discuss a repayment plan.

HMRC has also said that Self-Assessment taxpayers who may need to claim contributory benefits should ensure they pay their Class 2 National Insurance Contributions (NICs) by 31 January 2021 to ensure their claims are unaffected. Contributory benefits include the State Pension, Job Seekers Allowance, Employment Support Allowance or Bereavement Support Payment.

Please contact us today if you need Self-Assessment advice.

Only a few days are left to submit applications for the third SEISS grant

Only a few days are left to submit applications for the third SEISS grant

Any applications for the latest round of the Self Employment Income Support Scheme (SEISS) must be submitted by the deadline on 29 January 2021.

This grant offers a taxable support payment equal to 80 per cent of the average of three months’ trading profits (up to a maximum of £7,500) to eligible individuals.

If you believe that you are eligible for this grant, you should apply immediately.

Many of those who have previously used the scheme may still be eligible, as long as they are a self-employed individual or a member of a partnership, have trading profits of no more than £50,000 per year and meet the following criteria:

You must have traded in both tax years:

  • 2018/2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
  • 2019/2020.

You must also either:

  • Be currently trading but are impacted by reduced demand due to Coronavirus; or
  • Have been trading but are temporarily unable to do so due to Coronavirus.

You must also declare that:

  • You intend to continue trading; and
  • You reasonably believe there will be a significant reduction in your trading profits.

Further clarification on what constitutes reduced demand or a significant reduction in trading profits can be found on the GOV.UK website here.

You cannot claim the grant if you trade through a limited company as a director or you operate through a trust.

To confirm your eligibility and to make an application, please use the link below:

Click here to apply for the SEISS grant

Those who have used the scheme previously or intend to apply for the latest grant should be aware that all SEISS grants are taxable in the 2020/21 tax year.

This means that no element of the SEISS grants should be reported on a 2019/20 Self-Assessment tax return, which should be filed by 31 January 2021.

Funding via a fourth grant should be available soon, which will cover the period from February to April 2021. The details of this fourth grant, including its launch date and the amount of financial support available through it, are yet to be confirmed.

Claims for the SEISS have to made by the taxpayer themselves and cannot be made by agents, such as accountants.

However, if you need support preparing a claim for the SEISS, we can assist you.

Requests for exemption from publication of furlough claims must be submitted by Monday 25 January

Requests for exemption from publication of furlough claims must be submitted by Monday 25 January

HM Revenue & Customs (HMRC) has confirmed that the final deadline for employers to request an exemption from the publication of furlough claims will be this coming Monday 25 January 2021.

Shortly after it was announced in the autumn that the Coronavirus Job Retention Scheme (CJRS) would be extended and reset to resemble the original scheme launched in March 2020, HMRC said it would begin publishing claims from December 2020 onwards.

The information to be published on a monthly basis includes:

  • Employer names
  • A banded indication of the value of the claim
  • Company numbers (companies and Limited Liability Partnerships only)

The bands used to indicate the value of claims will be:

  • £1 to £10,000
  • £10,001 to £25,000
  • £25,001 to £50,000
  • £50,001 to £100,000
  • £100,001 to £250,000
  • £250,001 to £500,000
  • £500,001 to £1,000,000
  • £1,000,001 to £2,500,000
  • £2,500,001 to £5,000,000
  • £5,000,001 to £10,000,000
  • £10,000,001 to £25,000,000
  • £25,000,001 to £50,000,000
  • £50,000,001 to £100,000,000
  • £100,000,001 and above

HMRC has confirmed that this applies to all employers claiming from the scheme, including individuals, ordinary partnerships and trusts, unless they can demonstrate that doing so would lead to a “serious risk of violence or intimidation”.

HMRC requires evidence of such threats, which could include:

  • A police incident number;
  • Documentary evidence of a threat or attack; or
  • Evidence of possible disruption or targeting.

To submit a request to HMRC not to publish your claim details, please follow the instructions on GOV.UK here by Monday 25 January. Details of claims will be published by HMRC on Tuesday 26 January.