The final deadline for submitting CJRS claims for the month of September 2021 features in addition to an update from HMRC on the SEISS, information on how to report COVID supports in tax returns and news that the three-month extended window to appeal against tax decisions and penalties if the delay was due to COVID-19 also ended last month.
The Coronavirus job retention scheme (“CJRS”)
The final deadline to submit CJRS claims for periods in September 2021, the final month of the scheme, is later this week on Thursday 14 October 2021, unless reasonable excuse is available for late submission. Amendments to September 2021 claims must be made by Thursday 28 October 2021.
SEISS update
HMRC sent the below update regarding the Self-Employed Income Support Scheme (“SEISS”).
In the coming weeks HMRC will be writing to everyone who claimed at least one SEISS grant with key information for them to be aware of on how to report SEISS grants correctly on their tax return, and what to do if anything has changed since claiming. This will cover (depending on your client’s circumstances):
A reminder that SEISS grants are taxable:
- Taxpayers will be reminded that their SEISS grants are subject to income tax and National Insurance; and
- Grants received on or before 5 April 2021 should be included in 2020/21 tax returns (online filing deadline 31 January 2022). Grants received on or after 6 April 2021 should be included in 2021/22 tax returns (online filing deadline 31 January 2023).
How to report SEISS grants on the tax return:
- Taxpayers will be advised that 2020/21 returns and supplementary pages have a new box on which to report SEISS grants received on or before 5 April 2021; and
- Instructions are available on how to report SEISS (and other coronavirus support payments).
How HMRC corrects 2020/21 returns, if SEISS grants have not been returned in the way expected:
- Taxpayers will be asked to check the statement of account if HMRC has made an amendment to the SEISS grant entry; and
- Help is available on what to check and next steps will be included.
Changes to returns after 3 March 2021:
- Taxpayers will be reminded that they should tell HMRC about amendments made to their 2019/20, 2018/19, 2017/18 or 2016/17 tax returns after 3 March 2021; and
- Taxpayers will be instructed to follow the guidance and complete a form if amendments either:
- reduce the amount of fourth or fifth grant they are eligible for; or
- cause them to no longer be eligible for the fourth or fifth grant.
Fifth grant turnover test and the 2020-21 tax return:
- If a taxpayer completed the turnover test and provided a figure for the 12 month period from April 2020 to April 2021 which started on any date from 1 to 6 April 2020, they need to check this against the turnover figure they include in their 2020-21 tax return; and
- If they gave HMRC an incorrect turnover figure when they claimed the fifth SEISS grant or realise now that it was wrong, they need to tell HMRC by completing a form online.
Reporting coronavirus grants on tax returns
HMRC is also reminding taxpayers that grants to support businesses and self-employed people during the pandemic are taxable. If a taxpayer claimed CJRS or SEISS grants, these must be reflected in the relevant tax return. Depending on their business type, taxpayers need to report this as income on the corporation tax return, the partnership return or the self-employment pages of the individual tax return. Guidance on how to include a grant or payment on the tax return is available.
Closure of extended appeal window due to coronavirus
In February 2020, HMRC introduced a three-month extended window to appeal against tax decisions and penalties if the delay in appealing was due to coronavirus. This also ended last month on 30 September 2021.
For tax decisions and penalties dated up to and including 30 September 2021, the extended window to appeal is still available. Taxpayers should follow the normal process and times for appealing decisions dated from 1 October 2021 onwards.
HMRC is aware that some taxpayers are still feeling the impacts of coronavirus, and this may still be a reasonable excuse for not meeting their tax obligations on time in some cases. HMRC will continue to consider appeals and ask for evidence if needed.
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