HMRC has warned that businesses must
declare any coronavirus (COVID-19) support grants or payments on their company
tax returns and stated that the grants and payments are taxable.
The deadline for filing company tax
returns is 12 months after the end of the accounting period.
The deadline to pay corporation tax will
depend on any taxable profits and when the end of the accounting period
occurs. It is generally nine months after the end of the accounting period
unless profits exceed £1.5 million.
Grants to be included as taxable income
include:
•
Coronavirus Statutory Sick Pay
Rebate
•
Coronavirus Business Support
Grants (also known as local authority grants or business rate grants)
•
Coronavirus Job Retention
Scheme (CJRS) grant
•
Eat Out to Help Out payment.
If a company received any of these
payments, they will need to do both of the following on their CT600 tax return:
•
include it as income when
calculating their taxable profits in line with the relevant accounting
standards
•
report it separately on their
company tax return using the CJRS and Eat Out to Help Out boxes.
Myrtle Lloyd, HMRC's Director General
for Customer Services, said:
'We
want to make sure companies are getting their tax returns right, first time,
including any COVID-19 support payment declarations. Support and guidance is
available on GOV.UK.'
Internet
links: HMRC
press release GOV.UK
Government scheme gives discounts of up to £5,000 on accounting software
The government's Help to Grow: Digital scheme – designed to support
smaller businesses in adopting digital technologies – is now open for
applications.
Under the scheme, eligible businesses can now receive discounts of
up to £5,000 off the retail price of approved digital
accounting and CRM software from leading technology suppliers.
Businesses can also access practical, specialised support and
advice on how to choose the right digital technologies to boost their growth
and productivity.
Currently three accounting software providers are signed up to the
scheme – Sage, Intuit and E-crunch. The next phase of the programme will see
the scheme extended to e-commerce software.
Business Secretary Kwasi Kwarteng said:
'I want UK businesses to be
primed and ready to seize all the opportunities on the horizon as we build back
better from the pandemic.
'Adopting technology means
higher performance, and the Help to Grow: Digital scheme is future-proofing our
small businesses and putting the UK at the forefront of the worldwide digital
revolution.'
Internet link: Help
to Grow website
Claims portal reopens for Statutory Sick Pay Rebate Scheme
HMRC has reopened a claims portal for small employers to again claim
refunds for coronavirus (COVID-19)-related sick pay.
The reopening follows the announcement of the reintroduction of the
Statutory Sick Pay Rebate Scheme (SSPRS) from 21 December 2021 for employers
with fewer than 250 employees by the government.
The maximum claim per employee is two weeks at the statutory sick
pay (SSP) rate of £96.35 per week (£192.70 in total). The employer's claim is
also capped at the number of employees in its PAYE scheme on 30 November 2021.
The claims portal reopened
on 19 January 2022 and employers can check the eligibility of their claims
on GOV.UK.
HM Treasury and HMRC have not announced an end date for the SSPRS.
However, the legislation states that a claim may not be made after the end of
24 March 2022.
The Institute of Chartered Accountants in England and Wales (ICAEW)
said:
'There is an inevitable
time lag between absence periods and having the information to make a claim
(particularly when claims are made by agents). Therefore, there will hopefully
be a realistic window between the end date for the SSPRS and the date that the
claims portal will close.'
Internet link: GOV.UK
Consumer group urges taxpayers to avoid using refund firms to claim tax rebates
Consumer group Which? has urged taxpayers to avoid using so-called
'refund firms' to claim tax rebates.
Which? stated that people are losing hundreds of pounds by using
third-party companies to claim tax rebates rather than going directly to HMRC.
Research carried out by the group found that one in five
people had been either contacted directly by a tax refund company via
email, phone, letter or text message or found one online.
Two in five of those contacted by a tax refund company said
they used it in order to claim a tax rebate. Such companies often charge fees
anywhere between 25% to 48% of the rebate an individual receives. Extra admin
fees and VAT are often added on top, according to Which?.
HMRC told Which?:
‘We don’t accredit or
in any way approve agents and take firm action against any not complying with
the law. We encourage customers to come to us to make their marriage allowance
claim.
‘It takes only a few
minutes to complete the online application and eligible claims receive 100% of
their entitlement. It is important that people thinking of using a tax agent
are clear in advance about fees and are satisfied they’ll get the service they
sign up for.’
Internet link: Which?
website
National insurance rise 'set to squeeze budgets', warns CBI
The Confederation of British Industry (CBI) has warned the
government that the planned rise in national insurance will squeeze budgets and
affect economic growth.
The rise will see employers, employees and the self-employed pay
1.25p more in the pound from April 2022. From April 2023, the extra tax will be
collected as part of the new Health and Social Care Levy.
Prime Minister Boris Johnson and Chancellor Rishi Sunak recently
confirmed the rise, stating that it 'must
go ahead'.
The CBI said that the rise risks 'curtailing
growth at a critical moment in the recovery' from the coronavirus
(COVID-19) pandemic.
A spokesperson for the CBI said:
'If the government
goes ahead as planned, then it is incumbent on them to use the March Budget to
bring forward more ambitious plans to raise the longer-term growth potential of
the economy.'
Internet link: BBC News website
No 'convincing case' for digital UK currency, says House of Lords committee
Creating an official digital currency in the UK could pose significant
risks to the financial stability of banks, a House of Lords committee has
warned.
The Lords Economic Affairs Committee said introducing a Central
Banking Digital Currency (CBDC) 'would
have far-reaching consequences for households, businesses and the monetary
system'.
The committee made its conclusions after hearing testimony from
witnesses, including the Bank of England's Governor, Andrew Bailey; his deputy
Sir John Cunliffe; Economic Secretary to the Treasury, John Glen; and senior
Treasury official Charles Roxburgh.
Lord Forsyth of Drumlean, Chair of the House of Lords Economic
Affairs Committee, said:
'These risks include state
surveillance of people's spending choices, financial instability as people
convert bank deposits to CBDC during periods of economic stress, an increase in
central bank power without sufficient scrutiny, and the creation of a centralised point of
failure that would be a target for hostile nation-state or criminal actors.'
Internet link: Parliament
website
Scam HMRC call reports drop by 97%
Reports of scam HMRC phone calls have fallen by 97% over
the last 12 months, according to the latest figures from the tax authority.
According to HMRC, reports of scammers impersonating HMRC in phone
calls peaked at 79,477 in March 2021 and fell to just 2,491 in December
2021.
The fall in scam call reports to HMRC has also been seen elsewhere
with a 92% drop in phishing email reports and a 97% drop in scam
text reports over the last year.
This signals that the public is more aware of cyber criminals and
the methods they use to trick people.
Mike Fell, HMRC's Head of Cyber Security Operations, said:
'We work incredibly hard to
protect the public from these criminals who ruin lives by stealing from people.
It's great news that fewer people are receiving and reporting these attempted
frauds, but it is still important they continue to report suspicious contact to
us.
'We will continue to
do everything we can to protect the public from these cynical attempts to
impersonate HMRC to steal from people.'
Internet link: HMRC
press release
BCC calls for 'urgent action' to improve UK-EU trade
The British Chambers of Commerce (BCC) has called for urgent action
to help improve trade with the EU.
A survey carried out by the BCC revealed that 60% of UK exporters
reported difficulties trading with the EU. The business group said the number
of lorries waiting to get into the port of Dover 'also offers a vivid illustration of the problems continuing to impact
the operation of the trade deal between the UK and the EU'.
The BCC has outlined a series of recommendations designed to help
improve trade between the UK and the EU. The recommendations include
supplementary deals to reduce complexity around food exports, exempting
smallest firms from having to have multiple country VAT registration for online
selling and a more pragmatic approach to be taken to the enforcement of import
customs declarations.
William Bain, Head of Trade Policy at the BCC, said:
'No-one is expecting goods
to flow as freely across the channel now as they did prior to Brexit. But the
way the trade agreement is being interpreted in 27 different EU countries is a
major headache for UK business – especially smaller firms without the cash
reserves to set up new EU-based arrangements.'
Internet link: BCC
press release
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