HMRC PUBLISHES DETAILS OF FINAL GRANTS FOR SELF-EMPLOYED

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HMRC has published details of the eligibility criteria of the final two grants available under the coronavirus (COVID-19) Self-employment Income Support Scheme (SEISS).

At the 2021 Budget it was confirmed that the fourth SEISS grant will be set at 80% of three months’ average trading profits, paid out in a single instalment, capped at £7,500. It will cover the period from February 2021 to April 2021.

To be eligible for the fourth grant, self-employed workers must have filed their 2019/20 tax return by midnight on 2 March 2021. This includes those who became self-employed in 2019/20, provided they have filed according to the deadline.

Eligibility will be based on the 2019/20 self assessment tax return which may affect the amount of the fourth grant which could be higher or lower than previous grants.

The remaining eligibility criteria are unchanged so applicants must either be currently trading but impacted by reduced demand, or be temporarily unable to trade due to COVID-19. They must also declare an intention to continue trading.

Claims can be made from late April until 31 May 2021.

The fifth SEISS grant will cover the period from May to September 2021 and will be available from July.

It will be set at 80% of three months’ average trading profits, paid out in a single instalment, capped at £7,500, for those with a turnover reduction of 30% or more.

Alternately, it will be worth 30% of three months’ average trading profits, capped at £2,850 for those with a turnover reduction of less than 30%.

Further details of the fifth grant will be provided in due course.

Internet link: GOV.UK

CONSULTATIONS LAUNCHED ON UK’S FIRST TAX DAY

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The government has published over 30 updates, consultations and documents on the UK’s first ever Tax Day.

The announcements, which would traditionally be published at Budget, have been released later to allow for scrutiny from stakeholders.

It was announced that HMRC will tighten rules to force holiday let landlords to prove they have made a realistic effort to rent properties out for at least 140 days per year. There are suspicions that many simply declare that they will do this but leave the properties empty.

Declaring a home to be a holiday let means that it is exempt from council tax and owners pay business rates instead.

The Treasury plans to cut the rate of domestic Air Passenger Duty. The consultation also seeks views on supporting the UK’s commitment to net zero emissions by 2050 by increasing the number of international distance bands.

Inheritance tax (IHT) reporting regulations ‘will be simplified’ to ensure that from 1 January 2022 more than 90% of non-taxpaying estates will no longer have to complete IHT forms when probate or confirmation is required.

Jesse Norman, Financial Secretary to the Treasury, said:

‘We are making these announcements to increase the transparency, discipline and accessibility of tax policymaking.

‘These measures will help us to upgrade and digitise the UK tax system, tackle tax avoidance and fraud, among other things.

‘Many of today’s announcements form a key part of the government’s wider 10-year plan to build a trusted, modern tax system.’

Internet links: GOV.UK GOV.UK news