With the fifth and final round of SEISS grant funding expected to open imminently, and a further tapering of the CJRS taking effect in August, we thought it wise to bring you a brief COVID-19 update.
Claiming the fifth SEISS grant
If you are eligible, you may already have been contacted by HMRC, with your ‘personal claim date’; this is the earliest date that you can make a claim.
Those eligible customers who began trading in 2019/20 may also have been prompted to verify their identity. If you have received such a communication from HMRC, and you are unsure about its legitimacy, please do check with your adviser before responding.
If you were not eligible for the fourth SEISS grant, you will not be eligible for the final round of funding.
The fifth grant will be determined by a turnover test, which takes into account the extent to which your turnover has been diminished in the 2020/21 tax year, as a result of the pandemic.
Before you make a claim, you must decide if the impact on your business between 1 May 2021- 30 September 2021 will significantly reduce your trading profits for the tax year you report them in.
Claire Morgan, Partner at George Hay, says, “Whilst we cannot make an SEISS claim on your behalf, we can assist you with calculating your 2020/21 turnover figure should you require this.
“When preparing your tax return, we would remind you that SEISS grants must be reported accurately as they are subject to both income tax and National Insurance.
“We are aware that HMRC are taking to auto-correcting incorrect tax returns, where the SEISS reported does not match its records. Where this is the case, taxpayers will be notified and have an opportunity to dispute the correction if they do not agree with HMRC.
“Importantly, if you do intend to claim the fifth SEISS grant, this should be done on or before 30th September 2021.”
How will the CJRS change in August?
In August and September, the Government’s contribution under the Coronavirus Job Retention Scheme (CJRS) will fall to 60 per cent of employee’s usual wages, capped at £1,875.
Employers will be required to make up the difference, as well as the associated pensions and NI contributions.
You can make use of the CJRS calculator on the GOV.UK website to help you work out how much you can claim for employees, up to the end of September when the scheme closes.
How can George Hay help?
If you have questions or concerns about the SEISS or CJRS, or if you need support with ensuring any taxable COVID support is reported correctly on your self-assessment tax return, please contact us.