This week’s bulletin looks at notices issued by DEFRA about the changes facing traders in Great Britain who are importing animal products from the EU from 1 October. We also bring details of why the EU has paused its legal action against the UK, and news that the UK’s £20 million SME Brexit fund has closed with only £6.8 million in funding allocated.  EU pauses legal action against the UK  The European Commission said this week that it would pause two separate legal cases against the UK, citing that it wants to “continue constructive discussions” with the UK over the Northern Ireland Protocol.  The Commission had launched legal action last March when the UK government unilaterally delayed the introduction of checks for certain goods, including chilled meats, entering Northern Ireland from Great Britain.   By pausing its legal action, the Commission said this would help to “provide the necessary space to reflect on these issues and find durable solutions to the implementation of the Protocol.”  As covered in our bulletin last week, the UK had issued a command paper setting out what it wants changed in the Northern Ireland Protocol to enable smoother trade. The European Commission rejected proposals by the UK to renegotiate the Protocol.  The command paper called for a "standstill period", during which the EU would “freeze” its legal actions against the UK, and the UK would not make any more unilateral moves to disapply parts of the Northern Ireland Protocol.  Medicines and food safety checks  Earlier this week, the UK rejected the European Commission’s proposals for solutions to help ease trade friction on medicines and food safety checks moving from Great Britain to Northern Ireland.  The detail on medicines set out in one of the two so called “non-papers” proposed that quality control tests could be permanently conducted in Great Britain (rather than in Northern Ireland or the EU) if the medicines are only distributed within Northern Ireland and not sent to the EU.    Read the non-paper on medicines and food safety checks.  UK’s SME Brexit fund closes before all funding allocated  The £20 million SME Brexit Support Fund, designed to enable traders to access practical support – including training for new customs, rules of origin and VAT processes – closed for applications on 30 June 2021, with funding of just under £6.8 million allocated. Official figures show that £360,174 was granted to Northern Ireland based businesses.    Small and medium sized businesses that trade solely with the EU – and are therefore new to importing and exporting processes – were encouraged to apply for the grants. To be eligible, businesses must not have been involved in importing or exporting outside of the EU; a condition which disqualified a significant number of businesses from the grant.  It is unfortunate that certain conditions precluded a number of businesses from applying, particularly when the entire amount of funding was not allocated. DEFRA issues notices for traders importing goods from the EU from 1 October 2021  The Department for Environment, Food & Rural Affairs (DEFRA) has set out the new actions that are required from businesses importing products of animal origin into Great Britain from the EU from 1 October 2021.   Some of the requirements include:  Pre-notifying authorities that consignments will enter Great Britain  Uploading a certified Export Health Certificate using the Import of products, animals, food, and feed system (IPAFFS)  Find out how to apply for a health certificate to export SPS goods  Find out more about IPAFFS.  To assist with preparations, DEFRA are holding a series of webinars for traders with a panel of experts.   Webinar full schedule:  Importing Products of Animal Origin (9 Aug and 13 Sept)  Importing Animal By-Products (10 Aug and 14 Sept)  Importing composite products (11 Aug and 15 Sept)  Importing groupage loads (12 Aug and 16 Sept)  How to register for the Import of products, animals, food, and feed system (IPAFFS) - four dates in August  How to raise an importer notification using IPAFFS - 11 dates in August and September  UK-EU Trade in services – Reservations tool available  The Trade and Cooperation Agreement between the UK and EU contains agreed rules, known as “core commitments”, on international investment and trade in services.  These rules allow firms from either the UK or EU to sell services to, and invest in, each other without discrimination.   Some countries have reserved the right not to follow the core commitments, in which case 'reservations’ can apply.  Where a reservation applies, a country can apply laws that would otherwise breach their commitments, for example by blocking investment.   For EU reservations, some are specific to one Member State while others are EU-wide.   For UK firms, selling or providing services to the EU is different since the UK left the EU’s Single Market.  Businesses should check the reservations and national regulations of the country that you wish to sell services. The UK government has developed an interactive Reservation tool which can be used to find reservations that are EU-wide or specific to a Member State. Reservations are also provided by sector.    Access the Reservations tool on GOV.uk.   Ireland to receive €1 billion of Brexit funding  Minister for Public Expenditure and Reform, Michael McGrath has briefed the Irish Government on the funding Ireland will receive under the EU’s €5 billion Brexit Adjustment Reserve (BAR).   As the Member State most impacted by Brexit, Ireland will receive around 20 percent of the total fund; just over €1 billion.   Following political agreement in June between the Council of Ministers and the European Parliament, the BAR Regulation is expected to be formally adopted in September.  Possible areas identified for support under the BAR include enterprise supports; supports for the agri-food sector; fisheries; reskilling and retraining; and infrastructure for ports and airports.  Commenting on this development Minister McGrath said "Six months since the end of the Brexit transition period, we are seeing the impact that Brexit is having on trade and on particular sectors such as fisheries. With the support and solidarity of the European Union, the Brexit Adjustment Reserve will allow us to put in place measures to deal with the consequences of Brexit into the future."  Read more.  Read more updates on www.charteredaccountants.ie/brexit 

The UK government has set out in a command paper the elements it would like changed in the Northern Ireland Protocol.  In a document entitled “Northern Ireland Protocol: the way forward”, the UK wants goods from Great Britain that are destined to be consumed in Northern Ireland to be able to move freely without paperwork, tariffs, or checks.  Currently these goods require customs formalities because of risks they might pass into Ireland or the wider EU. The paper is clear in its message: the Protocol is not working in its current form and is disrupting supply chains resulting in goods not getting to their desired destination on time or at all. However, the UK’s Brexit Minister, David Frost stopped short of suspending parts of the Protocol by invoking Article 16, saying it was not the right time to do so. Instead, to resolve the situation, the UK government wants to “remove the burdens on trade in goods within the UK” while respecting the integrity of the EU’s Single market. To do this, the UK is proposing the following: Goods from Great Britain that are destined to be consumed in Northern Ireland should be able to move freely without paperwork, tariffs, or checks.For goods that move through Northern Ireland from Great Britain into Ireland (or the rest of the EU), full customs checks, and EU SPS checks would be carried out by UK authorities. For agri-food, EU SPS requirements would apply for goods going from Great Britain to Ireland via Northern Ireland and the UK would enforce them. There would be no certificates or checks for agri-food to be consumed in Northern Ireland. For live animals and certain plants, checks would still be required; however, the UK is seeking an “appropriately designed SPS agreement… setting out where UK and EU SPS legislation provided for the same high standards.” Data exchange between the UK and EU to improve policing of trade issues would be promoted. An international arbitration system would be put in place. The Protocol gives the European Court of Justice and other EU institutions the right to enforce some of its measures and the UK wants to change that. For medicines, the UK argues that the most straightforward way forward may be to remove medicines from the scope of the Protocol. In terms of VAT, the UK is seeking more flexibility to set its own VAT and excise rates and rules in Northern Ireland but with appropriate safeguards where “changes would introduce significant distortions on the island of Ireland.” The proposals would of course have to be agreed by the EU. During a meeting attended by the Institute yesterday with HMRC’s Joint Customs Consultative Committee (“JCCC”), to discuss the command paper, officials acknowledged that the detail of the proposals needed to be worked out and negotiated with agreement from the EU.   UK Prime Minister Boris Johnson and European Commission President Ursula Von der Leyen spoke by telephone yesterday after which Ms Von der Leyen said on Twitter that the EU would “continue to be creative and flexible within the Protocol framework. But we will not renegotiate.” The UK has sought a “standstill period” to negotiate the changes to the Protocol, acknowledging that certainty and stability for businesses were of paramount importance.  Officials at the meeting of the JCCC clarified to this Institute that the “standstill” provisions within the paper mean that current processes and requirements will continue as normal.  However, the UK has asked that the current grace periods, including those that apply to the importation of chilled meats into Northern Ireland from Great Britain, do not expire until the Protocol is renegotiated. This will ensure businesses do not face any further cliff edges.

This week’s bulletin examines the detail of the changes the UK would like to make to the Northern Ireland Protocol following the issuing of its command paper. We also bring you information from a meeting that the Institute attended with HMRC to discuss the proposed changes. In other news, HMRC has sent letters to VAT registered businesses trading goods between Great Britain and the EU and we also bring you the latest Trader Support Service Bulletin. UK sets outs proposals to change the Northern Ireland Protocol The UK government has set out in a command paper the elements it would like changed in the Northern Ireland Protocol.  In a document entitled “Northern Ireland Protocol: the way forward”, the UK wants goods from Great Britain that are destined to be consumed in Northern Ireland to be able to move freely without paperwork, tariffs, or checks.  Currently these goods require customs formalities because of risks they might pass into Ireland or the wider EU. The paper is clear in its message: the Protocol is not working in its current form and is disrupting supply chains resulting in goods not getting to their desired destination on time or at all. However, the UK’s Brexit Minister, David Frost stopped short of suspending parts of the Protocol by invoking Article 16, saying it was not the right time to do so. Instead, to resolve the situation, the UK government wants to “remove the burdens on trade in goods within the UK” while respecting the integrity of the EU’s Single market. To do this, the UK is proposing the following: Goods from Great Britain that are destined to be consumed in Northern Ireland should be able to move freely without paperwork, tariffs, or checks.For goods that move through Northern Ireland from Great Britain into Ireland (or the rest of the EU), full customs checks, and EU SPS checks would be carried out by UK authorities. For agri-food, EU SPS requirements would apply for goods going from Great Britain to Ireland via Northern Ireland and the UK would enforce them. There would be no certificates or checks for agri-food to be consumed in Northern Ireland. For live animals and certain plants, checks would still be required; however, the UK is seeking an “appropriately designed SPS agreement… setting out where UK and EU SPS legislation provided for the same high standards.” Data exchange between the UK and EU to improve policing of trade issues would be promoted. An international arbitration system would be put in place. The Protocol gives the European Court of Justice and other EU institutions the right to enforce some of its measures and the UK wants to change that. For medicines, the UK argues that the most straightforward way forward may be to remove medicines from the scope of the Protocol. In terms of VAT, the UK is seeking more flexibility to set its own VAT and excise rates and rules in Northern Ireland but with appropriate safeguards where “changes would introduce significant distortions on the island of Ireland.” The proposals would of course have to be agreed by the EU. During a meeting attended by the Institute yesterday with HMRC’s Joint Customs Consultative Committee (“JCCC”), to discuss the command paper, officials acknowledged that the detail of the proposals needed to be worked out and negotiated with agreement from the EU.   UK Prime Minister Boris Johnson and European Commission President Ursula Von der Leyen spoke by telephone yesterday after which Ms Von der Leyen said on Twitter that the EU would “continue to be creative and flexible within the Protocol framework. But we will not renegotiate.” The UK has sought a “standstill period” to negotiate the changes to the Protocol, acknowledging that certainty and stability for businesses were of paramount importance.  Officials at the meeting of the JCCC clarified to this Institute that the “standstill” provisions within the paper mean that current processes and requirements will continue as normal.  However, the UK has asked that the current grace periods, including those that apply to the importation of chilled meats into Northern Ireland from Great Britain, do not expire until the Protocol is renegotiated. This will ensure businesses do not face any further cliff edges. UK PM speaks to German Chancellor about Protocol Yesterday afternoon, the UK Prime Minister Boris Johnson and German Chancellor Angela Merkel spoke by telephone about the Northern Ireland Protocol.  During the call, Mr Johnson said that the Protocol in its current form was failing to deliver on its intended objectives and was causing disruption for the people and businesses in Northern Ireland and the position was not sustainable. Noting the need to preserve the delicate balance in the Good Friday Agreement, the Prime Minister explained why he has set out proposals to significantly change the Protocol by way of Command Paper. Mr Johnson urged the Chancellor and the EU to collectively engage in a constructive and detailed discussion on the proposals contained within the command paper. Read more on GOV.uk. Letters to businesses about importing and exporting goods between GB and the EU HMRC has sent letters to VAT-registered businesses in GB trading solely with the EU, or the EU and the rest of the world. They explain what businesses need to do to comply with the new rules for importing and exporting with EU countries including: making sure they have a UK Economic Operator Registration and Identification (“EORI”) number. ensuring they are ready to make customs declarations. checking if their goods are eligible for the preferential zero duty rates: and preparing for the end of staged import controls on 1 January 2022. New HMRC campaign HMRC has also launched a new campaign aimed at helping UK businesses prepare for the customs changes coming into force from January 2022. Over the coming days more than 160,000 businesses will receive a letter from HMRC explaining the steps they need to take to continue trading in the EU. In particular, the letter highlights guidance on making supplementary declarations, appointing a customs intermediary and the requirements for Export Health Certificates which are needed for animal products. HMRC will continue to contact businesses over the coming months with more information on the introduction of full customs declarations. The Command Paper which sets out suggested changes to the Protocol proposes that certain grace periods be extended; however, status quo remain for now.   Latest Trader Support Service Bulletin The latest Trader Support Service (“TSS”) bulletin 36 is available. This features the following: how to access NI Customs and Trade Academy guides and support within the TSS portal. Automatic Licence Verification System – coming soon to TSS. A reminder about the updated Goods Vehicle Movement Service. Updated Customs Declaration Service error code guidance; and Find out if you need to pay a tariff on your goods brought into NI from GB. New personalised supplementary declaration planner If you’ve chosen to delay making customs import declarations on non-controlled goods that you have brought in from the EU this year, you have to make a supplementary declaration within 175 calendar days of your shipment arriving in GB. A new planner has now been published which sets out the key actions you need to take to complete your supplementary declaration within 175 calendar days of importing your goods. See www.charteredaccoutants.ie/brexit for information relating to the UK’s departure from the EU.    

In this week’s EU exit corner, the latest Trader Support Service bulletin is featured together with news of letters to businesses, a new HMRC campaign, a planner to keep track of supplementary declarations and more. Letters to businesses about importing and exporting goods between GB and the EU HMRC has sent letters to VAT-registered businesses in GB trading solely with the EU, or the EU and the rest of the world. They explain what businesses need to do to comply with the new rules for importing and exporting with EU countries including: making sure they have a UK Economic Operator Registration and Identification (“EORI”) number; ensuring they are ready to make customs declarations; checking if their goods are eligible for the preferential zero duty rates; and preparing for the end of staged import controls on 1 January 2022. New HMRC campaign HMRC has also launched a new campaign aimed at helping UK businesses prepare for the customs changes coming into force from January 2022. Over the coming days more than 160,000 businesses will receive a letter from HMRC explaining the steps they need to take to continue trading in the EU. In particular, the letter highlights guidance on making supplementary declarations, appointing a customs intermediary and the requirements for Export Health Certificates which are needed for animal products. HMRC will continue to contact businesses over the coming months with more information on the introduction of full customs declarations. Latest Trader Support Service Bulletin The latest Trader Support Service (“TSS”) bulletin 36 is available. This features the following:- how to access NI Customs and Trade Academy guides and support within the TSS portal; Automatic Licence Verification System – coming soon to TSS; A reminder about the updated Goods Vehicle Movement Service; Updated Customs Declaration Service error code guidance; and Find out if you need to pay a tariff on your goods brought into NI from GB. New personalised supplementary declaration planner If you’ve chosen to delay making customs import declarations on non-controlled goods that  you’ve brought in from the EU this year, you have to make a supplementary declaration within  175 calendar days of your shipment arriving in GB. A new planner has now been published which sets out the key actions you need to take to complete your supplementary declaration within 175 calendar days of importing your goods. Events and webinars Keep up to date with the latest events and webinars. A calendar of upcoming webinars for organisations that trade with the EU is available.  Useful links Click for the Reservations Tool to support businesses who export services to the EU; You can sign up to email alerts on GOV.UK; and  Sign up for Home Office email updates about the next steps for EU citizens in the UK.   

This week’s bulletin reports on strong cargo volumes through Dublin Port in the second quarter of 2021. We also bring you updated guidance from Revenue on importing second-hand cars from Great Britain through Northern Ireland as well as the latest guidance and webinars from HMRC. HMRC are also looking for volunteers to be involved in research on the XI EORI application process-anyone interested can let us know by emailing brexit@charteredaccountants.ie. Dublin Port volumes recover in second quarter of 2021 Dublin Port authorities have said that the volume of goods passing through Dublin Port have recovered strongly in the three months to June 2021, despite the UK’s departure from the EU.  13.1 percent more goods (9 million gross tonnes) passed through the Port during this period when compared to the same period last year.   Volumes for the first six months of 2021 were down 2.1 percent compared to the same period last year however Eamonn O’Reilly, CEO of Dublin report said that “As each month goes by, the negative impact of the exceptionally weak start to the year post Brexit is being reduced.” Roll-on/Roll-off (Ro-Ro) and Lift-on/Lift-off (Lo-Lo) accounted for 84 percent of all cargo volumes in the second quarter and the number of trailers and containers combined increased by 16.5 percent to 374,000 units. Imports of new vehicle more than doubled to 22,000 units in the second quarter. Reflecting the shift in route patterns post Brexit, Mr O’Reilly said “The effects of Brexit on the pattern of trade through Dublin Port are now becoming clearer with very strong growth of 40% on Ro-Ro and Lo-Lo services to Continental European ports compared to a decline of -19% on services with ports in Great Britain. As a result, our unitised volumes are now split 50/50 between GB ports and ports in Continental Europe. Before Brexit, GB ports accounted for almost two-thirds.” Read more Importing vehicles into Ireland from Northern Ireland – updated guidance from Revenue Where a second-hand car has been imported into Ireland from Great Britain (via Northern Ireland) since 1 January 2021 and customs formalities were completed in Northern Ireland, the person who wishes to register the car in Ireland must contact Revenue before doing so.  This is because there will be a VAT liability that needs to be discharged before registering the car for Vehicle Registration Tax (VRT).   Revenue will request verification that the customs formalities have been completed in Northern Ireland. A Trader Support Service simplified frontier or supplementary declaration will be sufficient where the vehicle is identified. An Entry Summary Declaration (ENS) declaration will not be accepted.  If proof cannot be provided that customs formalities have been completed in Northern Ireland, then an import declaration will need to be made in Ireland and customs duties (if any) must be paid in Ireland before the car is presented for registration. Once the VAT (charged at the standard rate) is either paid or accounted for (in the case of VAT registered businesses only), Revenue will provide the necessary documentation the person seeking to register the car. This is a temporary arrangement until VAT at importation is regularised for cars imported from Great Britain to Northern Ireland. The UK and EU are currently discussing this matter; the UK is seeking a derogation from the EU to apply the VAT margin scheme to second-hand cars. Read Revenue’s eCustoms notification 44/2021 for further details. Please note that this notification replaces eCustoms notification 26/2021. Goods imported by truck which had originally been intended to arrive by air Revenue has confirmed that goods which are imported into Ireland by truck, but which had originally been intended to arrive by air should be declared as a road entry on the customs import declaration. Goods will arrive by truck and be entered into a Temporary Storage facility (TSF) before being released into a customs procedure in the EU. On arrival of the goods at the TSF, a presentation notification/temporary storage declaration (G3/G4) should be lodged in AIS. Read more about this process in eCustoms notification 45/2021.   Research request HMRC is currently conducting research on the XI EORI application process. The main aim of this research is to: understand what problems are encountered whilst applying for an XI EORI using the current application process; and identify and negate any problems that may be present in prototypes of the new XI EORI application process, so that it will be easier to apply for an XI EORI. HMRC is seeking to speak with people who have applied for an XI EORI either: for a company that they own/work for; or as an agent on behalf of a company HMRC is running these research meetings from 12 to 23 July between 9am and 5pm. If you would be happy for your email to be provided to HMRC to take part in this research, contact brexit@charteredaccountants.ie who will pass this on to HMRC. HMRC will then contact you directly to find a suitable time for the research. Customs processing HMRC has sent the below information about some of the approvals and special procedures that may help simplify customs processing and reduce VAT and customs duty owed and where to go for more help. These may be useful if you are a business that usually re-imports or re-exports as part of your business process. “1. Inward processing This is a customs special procedure that allows you to suspend Customs Duty and import VAT on goods you bring into the UK for repair or as materials for manufacturing. You will not need to pay duty or import VAT on the goods if you re-export them following processing or repair. For example, this may apply if you’re bringing your camera equipment into the UK from France for repairs with the intention of returning them to France. Or, if you’re bringing in fabric to be made into dresses which you will then export. Find more information on using inward processing on GOV‌‌‌.UK. Find more information on applying to delay or pay less duty on goods you import to process or repair on GOV.UK. 2. Outward processing This allows you to temporarily export goods outside the UK for processing or repair and pay less Customs Duty and import VAT when you re-import them into the UK. This may apply, for example, if you’re exporting a batch of computers to Germany to be repaired and returned to the UK. Or if you’re exporting bales of fabric to Romania to be made into prom dresses and then re-imported into the UK. Find out more on using outward processing on GOV‌‌‌.UK. Find more information on applying to pay less duty on goods you export to process or repair on GOV.UK. Q3. Temporary Admission This is a special procedure that allows you to temporarily import goods into the UK or move goods from Great Britain into Northern Ireland without paying Customs Duty or import VAT. You may use the goods for up to two years or more, before re-exporting them. For example, this may apply if you’re temporarily bringing in samples, professional equipment or items for auction, exhibition or demonstration into the UK. You can apply for Temporary Admission if you’re the person using the goods or you’re arranging for the goods to be used on your behalf. Find more information on how to apply to import goods temporarily on GOV.UK. Q4. Returned Goods Relief This allows you to claim relief from Customs Duty and import VAT if you’re re-importing items into the UK that have previously been exported. When you re-import your items, you’ll need to make sure they’ve not been altered, apart from work to maintain them. This may apply, for example, if you’re re-importing office furniture, equipment or instruments because you’re moving back to the UK from an EU country where you previously exported the goods to. Find out more on paying less import duty and VAT, when re-importing goods on GOV.UK. Q5. Customs warehousing This allows you to suspend Customs Duty and VAT on goods that you import into the UK and store in a warehouse to be re-exported. Duty and VAT will only become payable when the goods are removed from the warehouse into UK circulation. For example, no duty or VAT will be payable if you import children's toys from China to be stored in a warehouse in the UK before being re-exported to Portugal. Find out more information on how to use a customs warehouse on GOV.UK. Q6. How would I know which approvals and special procedures I need? If you’re using an intermediary to move your goods, they may already have approvals and special procedures in place that you can make use of. You should check this with your intermediary. To find out more, go to our simple online trader tool where you can check what options are available and most suitable for you. Q7. Where can I find further help and support? More information on where to watch videos, sign up for email alerts and register for webinars to learn more about UK transition can be found on the help and support page on GOV‌‌‌.UK. Watch the video on how to use the online trader tool and our other short videos on HMRC's YouTube channel to familiarise yourself with customs processes and what you need to do before trading goods with the EU. To ask and get answers to specific questions about HMRC processes for importing or exporting, please visit our customer forums. Give us a call Our customer service advisors are available to answer your queries on the Customs and International Trade helpline. They’ll help you with importing, exporting and customs reliefs. The helpline is open from 8‌‌‌‌am‌‌ ‌to‌ ‌10‌‌‌‌pm Monday‌‌ ‌to‌‌ ‌Friday and from 8‌‌‌‌am‌‌ ‌to‌‌ ‌4‌‌‌‌pm at week‌‌‌ends. Call 0300‌‌‌‌‌‌ ‌322‌‌ ‌‌9434 to speak to an advisor. We will continue to provide guidance and support to help you and your business, including information on GOV‌‌‌‌.UK, our popular live webinars and through this weekly email. If you know of a business who would also find these weekly emails helpful, please forward it on, or suggest they register to get these updates directly to their inbox.” Webinars Importing – steps you need to take before making your supplementary declaration To support those who’ve delayed their customs import declarations, HMRC explains in this webinar the actions you need to take before you can make a supplementary declaration and how intermediaries can help you do this. Please register to take part if your clients have imported goods since 1 January 2021 and not yet completed a customs declaration for them. If your clients are planning to import and you want to understand the full declarations process, please register for Customs Import Declarations: an overview. Exporting: what you need to do to keep your goods moving This webinar is an overview of the actions to take now when exporting goods from Great Britain to the EU and moving goods between Great Britain and Northern Ireland. Key processes include zero-rated VAT, customs declarations and using an intermediary in addition to licences, certificates, and authorisations. Please register to take part if you’re planning to export. Trader responsibilities when using an intermediary This webinar explains your client’s responsibilities as a trader if they choose to use an intermediary to complete import or export declarations for their business. These are complex and an intermediary can save a lot of time. Please register to take part if you’re planning to import or export. Rules of origin If your clients buy goods from the EU or send or sell goods to the EU for their business, this recorded webinar will help them understand rules of origin and what’s required to meet the rules. It can be paused or rewound to allow you or your clients to work through the information at your own pace. Watch the recorded HMRC webinar   See www.charteredaccoutants.ie/brexit for information relating to the UK’s departure from the EU.    

More information on SEISS grant 5, upcoming CJRS deadlines and a reminder of the changes to the CJRS from 1 July all feature this week. SEISS grant 5 Eligible taxpayers will be able to make claims for SEISS grant 5 when the online claims service opens later this month. From mid-July, HMRC will be 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. Taxpayers who were not eligible for SEISS grant 5 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 begun 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. The CJRS The deadline to submit  CJRS claims for periods in June 2021 is in two days’ time on Wednesday‌‌ ‌14‌ July 2021, unless reasonable excuse is available for late submission. Amendments to June 2021 CJRS claims must be made by Wednesday 28 July 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.