HMRC sets out penalty regime for SEISS abuse

As the fourth self-employment income support scheme (SEISS) ramps up for applications, HMRC has confirmed the penalty regime with harsh fines for abuse of financial support. An over-claimed SEISS grant includes any amount of grant which the self-employed individual was not entitled to receive or was more than the amount HMRC said the applicant was entitled to when the claim was made. Overpayments must be notified to HMRC within 90 days of receipt of a SEISS grant. When deciding the…

This project was announced by Chancellor George Osborne as part of the spending review back in March, where he allocated £1.3Billion to the department to turn HMRC into “one of the most digitally advanced tax administrations in the world” However, this isn’t simply a case of creating an online portal for people to interact with HMRC. This project requires the tax authority to simplify its systems and integrate the data it holds across a number of silos. Equally, it will…

The NMW which applies to 21 and 22 year-olds has risen from £8.20 to £8.36 and the NLW has risen from £8.72 to £8.91. 23 and 24 year olds are now eligible for the NWL, prior to April 1st 2021, only workers ages 25 and over were eligible. The rates for NMW and NLW for all employees are as follows:   Previous Rate (£) Rate from April 2021(£) Increase (%) National living wage 8.72 8.91 2.2 21-22 Year-old rate 8.20…

On 21 April, the online service for applications for the fourth Self-employment Income Support Scheme (SEISS) grant was opened for claims, HMRC confirmed. All applications must be submitted by the individual self-employed worker and cannot be handled by accountants or tax advisers. The fourth grant will be 80% of three months average trading profits, to be claimed from late April 2021. Payment will be in a single installment capped at £7,500 in total and will cover the period 1 February…

The institute of Chartered Accountants in England and wales (ICAEW) has urged HMRC to rethink the requirement for companies to report quarterly under Making Tax Digital Corporation Tax (MTD for CT). In its response, to HMRC’s consultation on expanding the Making Tax Digital (MTD) regime to Corporation Tax (CT), ICAEW urges HMRC to reconsider quarterly reporting requirements, at the very least for businesses below the VAT registration threshold and organisations that require a senior accounting officer. The faculty’s response argues…

HMRC has published details of the eligibility criteria of the final two grants available under the corona virus (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 installment, capped at £7.500. It will cover the period from February to April 2021. To be eligible for the fourth grant you must be a self-employed individual…

The UK government has unveiled a £20 million Brexit support package to help small and medium-sized enterprises (SMEs) with changes to customs and tax rules when trading with the EU. The SME Brexit Support Fund aims to help businesses prepare for the implementation of further import controls which come into force later this year. You can use the grant for training on: How to complete customs declarations How to manage customs processes and use customs software and system Specific import…

Chancellor Rishi Sunak has announced an extension of the stamp duty holiday in England, a super deduction capital allowance. Extensions of the Corona virus Jobs Retention Scheme (CJRS) and Self-employment Income Support Scheme (SEISS): and an extension of the VAT cut for the tourism and hospitality sectors. The Bill will make sure the measures announced in the budget take effect from April 6 2021. It also legislates for tax changes that were previously consulted on and subsequently confirmed at the…

The government has published over 30 updates, consultations and documents on the UK’s first ever tax day. On 23 march 2021, `Tax Day`, the government published a range of consultations and reviews. The primary focus was the modernization of the tax system, boosting compliance and streamlining tax payments. However, there was little information on the future policy direction and more “high profile” areas such as online sales tax, taxation of wealth and environmental taxes were not covered. It was announced…

The Government is to extend business rates relief with a £1.5 billion fund targeted at those businesses unable to benefit from the current COVID-19 Support Retail, hospitality and leisure businesses have not been paying any rates during the pandemic, as part of a 15 month-long relief which runs to the end of June this year. However, many businesses ineligible for relief have been appealing for discounts on their rates bills, arguing the pandemic represented a “material change of circumstance”(MCC) The…