There have been a few further announcements this week along with HMRC issuing statements in relation to previous measures. The start of the new tax year is also a perfect time to start thinking about your tax position for the year ahead. Our summary of the updates are as follows:
- HMRC have issued a statement to agents that the portal to claim grants under the Job Retention Scheme will be ready to launch on 20th April 2020.
Please feel free to contact us ahead of this date if you would like further details on the scheme or what information you will need to hand to make a claim for each furloughed employee.
- In relation to the Job Retention Scheme HMRC will be doing extensive checks on the claims made and in the digital age many checks can be made without the employer knowing.
Therefore, any employees on the scheme should not be undertaking any work and this includes something as innocent as promoting the business via social media. If HMRC finds an employee has been working this could impact on the whole claim not just the element of the grant connected to that employee.
- Struggling charities are to receive much needed help after the Chancellor announced a total package worth £750 million.
Part will be delivered via cash grants direct to charities providing key frontline services such as end of life care and assistance to vulnerable people in the community. Smaller and medium sized charities at the heart of local communities that are offering support during the outbreak will be eligible for grants via the National Lottery Community Fund.
- HMRC has issued warnings to taxpayers stating that they will not make contact via email, text or phone calls. If you receive any communication asking you to follow links or calls asking you to provide information this is probably a scam.
- If you or your business are struggling to pay tax liabilities in the current climate HMRC have urged people to contact them as soon as possible to discuss your circumstances. To discuss Time to Pay plans there is a dedicated helpline is 0800 024 1222.
- The coronavirus pandemic is causing many people to see a reduction in their income which has a knock-on effect to an individual or couples tax position.
o High Income Child Benefit Charge may be reduced or eliminated completely. Therefore, you may wish to consider claiming child benefit or if you have opted out of receiving the payment you may wish to restart this.
o If you are married or in a civil partnership and your partner has not utilised their personal allowance for tax and you are a basic rate taxpayer you may wish to claim the Marriage Allowance. The claim allows 10% of a personal allowance to be transferred to the spouse/civil partner that pays tax at the basic rate.
Our tax team will be happy to discuss your situation and provide further details.
For further information on financial assistance available please visit our resources section. Please also feel free to contact us if you have any questions or require any assistance.