HMRC Stakeholder Digest – 19 August 2021

Please see the following message which we are sharing on behalf of HMRC:

This HMRC Stakeholder Digest provides a round-up of our latest news and updates, which we’d be grateful if you could share with your clients, customers or members.

The government has set up a dedicated support page where businesses can find the right support, advice and information to help with the impact of coronavirus (COVID-19).

Submit CJRS claims for August  

CJRS claims for August can now be submitted and must be made by Tuesday 14 September.  

For August and September, employers can claim 60% of furloughed employees' usual wages for the hours not worked, up to a cap of £1,875 per month. They'll need to contribute 20% from their own funds so that furloughed employees are paid at least 80% of their usual wages in total for the hours they do not work (up to a cap of £2,500 a month).

September will be the last month of the CJRS.

What employers need to do now

• work out how much they can claim, and the contribution they’ll need to make to reach 80%, on GOV.UK  
• submit any claims for August, no later than Tuesday 14 September 
• keep records supporting the grants claimed, in case we need to check them  
• make sure they continue paying CJRS-related employee tax and National Insurance contributions to HMRC, and contact us if they’re struggling to pay
• prepare for the scheme closing on 30 September.

Frequently asked questions about the CJRS

Employers can find everything they need to know about the CJRS on GOV‌‌‌‌‌‌‌.UK, but here are some answers to the questions that employers have been asking us recently: 

What if an employer has claimed too much in error?

If an employer has claimed too much CJRS grant and has not already repaid the overclaimed amount, they can repay as part of their next online claim without needing to call us. If they claimed too much but do not plan to submit further claims, they can let us know and make a repayment online through our card payment service or by bank transfer.

Employers must notify us and repay the money by the latest of whichever date applies below:

• 90 days from receiving the CJRS money they’re not entitled to
• 90 days from the point circumstances changed so that they were no longer entitled to keep the CJRS grant.

If employers do not do this, they may have to pay interest and a penalty, as well as repaying the excess CJRS grant.

What if an employer hasn’t claimed enough?

If an employer made a mistake in their claim that means they received too little money, they’ll need to amend their claim within 28‌‌ ‌calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, where the deadline is the next weekday. The deadline to amend claims for July is Tuesday 31 August.

Find out how to amend a claim on GOV.UK.

Self-Employment Income Support Scheme (SEISS)

The claims service for the fifth SEISS grant is now open and eligible customers have until 30 September 2021 to submit their claim. There’s more support for tax agents via our YouTube video.

The latest SEISS updates for eligible customers are also below.

Delays to processing some 2020-21 Self Assessment tax returns

As we shared in our last update, there is a delay to processing some 2020-21 tax returns where SEISS grant payments have not been reported in the way we expected, for example where our records show a different amount was paid than amount declared on the return.

From 19 June we automatically correct the SEISS grant amounts entered on 2020-21 Self Assessment returns when we process them. We are currently processing and correcting returns submitted before that date. This work is progressing faster than expected and we hope to provide you with a further positive update soon. 

We will contact customers after correcting their return, and dependent on the changes made, the customer may need to take further action. It’s important to check any adjustment or statement of account to make sure the changes are accurate, otherwise they might be taxed twice for their SEISS grant. If the customer receives a statement of account and need to make further amendments to their return, they can visit this page on GOV.UK for help on how to do this.

To make it easier for customers to make changes to their tax returns, we have recently updated our processes and can now accept amendments to SEISS grant entries over the phone. Agents who are authorised by their clients can also make these amendments by phone, on their behalf.

We know eligible customers may have concerns around the delay in issuing SA302 tax calculations/evidence of earnings where they’re needed for mortgage applications. We have written to mortgage lenders to update them on the situation and ask that they consider accepting alternative evidence until this is resolved. Many mortgage providers will accept a copy of the SA302 printed from their online Self Assessment account or commercial software – a list of these mortgage providers and lenders is available on GOV.UK

Support remains available for customers facing financial hardship due to the delay, and anyone in this situation should call us on 0800 024 1222 to speak to an adviser.

Advice for CIS subcontractors completing the turnover test for fifth SEISS grant

Construction Industry Scheme (CIS) subcontractors calculating their turnover figure for the 12 month period starting on any date between 1 April and 6 April 2020 (the pandemic year) should include the full amounts on their invoices, before any deductions contractors have made in the ‘CIS deductions’ box.

When finding their turnover figure on their Self Assessment tax return for 2019-20 or 2018-19 (the reference year), subcontractors should also use the full amount, before any deductions contractors have made in the ‘CIS deductions’ box.

We will be updating our GOV.UK guidance shortly to make this clear for customers who have CIS deductions. 

COVID-19 changes being reviewed

Since March 2020, HMRC has introduced more than 80 tax policy and process easements to help our customers deal with the impacts of COVID-19. As COVID-19 restrictions are lifted, we’re reviewing these – with some due to end and others being permanently adopted to help customers manage their tax affairs in the future. An example of this is the electronic process that has now been adopted for transactions which previously required physical stamps, such as duty paid on shares purchased on a stock transfer form.

We’ll continue to update our stakeholders and customers when we make changes, so they can plan and prepare in good time.

New sector-specific guidance to help businesses cut their carbon footprint

New sector-specific advice created by government and industry experts has been released to help businesses take steps to reduce their greenhouse gas emissions.

By making greener choices now, as the UK gears up for the COP26 Climate Conference in November, businesses will not only help tackle climate change – they will also benefit from savings on running costs, and a reputation boost.

The guidance can be found on the UK Business Climate Hub, which was launched in June as part of the government’s Business Climate Leaders’ campaign.

Business can make a climate commitment to become net zero when they visit the UK Business Climate Hub.