SEISS grant 5, upcoming CJRS deadlines, a reminder of the changes to the CJRS from 1 July, and the statutory sick pay rebate scheme all feature this week.
SEISS grant 5
Eligible taxpayers are now able to make claims for SEISS grant 5. From mid-July, HMRC has been contacting taxpayers who may be eligible to let them know their earliest personal claim date and to ensure they are aware of the need to calculate turnover for most claimants.
Find out if a claim is possible by checking all criteria in stages 1, 2 and 3 are met including the turnover test which will be required to be met by most taxpayers. This test considers how much turnover has gone down by in the 2020/21 tax year due to the pandemic. The guidance on the turnover test has been updated recently.
Taxpayers who were not eligible for SEISS grant 4 will not be eligible for SEISS grant 5 as HMRC is using the same tax returns to determine eligibility for both grants.
HMRC are stressing that taxpayers do not need to submit their 2020/21 Self-Assessment tax return at this time, even though the taxpayer is being asked for their 2020/21 turnover. Once again, agents will not be able to apply for SEISS grant 5 on behalf of their clients.
HMRC has also been contacting some taxpayers who may be eligible for SEISS grant 5, if they started trading in 2019/20, to verify their identity. HMRC is asking taxpayers for one form of identity and three months’ worth of bank statements from the 2019/20 tax year. To confirm the contact is genuine, taxpayers can go to HMRC trusted contacts on GOV.UK.
Get ready for the invitations to claim 5th SEISS Grant
HMRC says claiming online is the quickest and easiest way for customers to get their grant. To get started, customers can search ‘SEISS’ on GOV.UK anytime from their personal claim date until 30 September 2021.
To confirm their eligibility and make their claim, customers will need their:
- Turnover figure for a 12-month period from April 2020 to April 2021
- Turnover figure for 2019/20 or 2018/19 if required.
- National Insurance number: customers can find this on the HMRC app, their online Personal Tax Account (PTA) or by asking their tax agent if they have one.
- Self-Assessment Unique Taxpayer Reference (UTR) number: customers can find this on their Self-Assessment papers, in their PTA or by asking their tax agent.
- Government Gateway user ID and password: To avoid delays, customers should check that they can log in to the Government Gateway before their personal claim date. If customers don’t have an account, or have forgotten their details, they can follow the instructions on GOV.UK by searching ‘HMRC services: sign in or register’. Customers should also check that their contact details are correct in their Government Gateway account.
- Bank account number and sort code: For a building society account, customers should include the roll number if they have one.
The CJRS
The deadline to submit CJRS claims for periods in July 2021 is Monday 16 August 2021, unless reasonable excuse is available for late submission. Amendments to July 2021 CJRS claims must be made by Tuesday 31 August 2021.
Changes from 1 July 2021
From Thursday 1 July 2021, CJRS grants cover 70 percent of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August 2021 and September 2021, this will then reduce to 60 percent of employees' usual wages up to a cap of £1,875.
Employers will need to pay the 10 percent difference in July (20 percent in August and September), so that they can continue to pay their furloughed employees at least 80 percent of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. Employers continue to be required to pay the associated employee tax and National Insurance contributions to HMRC in these months.
The employer contribution is a condition of applying for the grant; not paying this means the employer will need to repay the whole of the CJRS grant and they may not be able to claim for future CJRS grants.
For the hours not worked employers can continue to choose to top up their employees' wages above the 80 percent level or cap for each month, at their own expense.
Furloughing flexibly
Employers don’t need to place all their employees on full furlough. They can use the CJRS flexibly to bring their employees back to work for some of their usual hours. Employers can claim for a portion of their usual wage costs for the hours spent on furlough.
Statutory Sick Pay Rebate Scheme
The statutory sick pay (“SSP”) rebate scheme continues to provide financial support to small and medium-sized employers. Employers with fewer than 250 employees who have paid SSP to employees for COVID-19 related sickness absence may be eligible for support. Any repayment of SSP covers up to two weeks of the applicable rate of SSP. For more information on eligibility and how to make a claim, check the guidance.
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