October 16, 2020

Hello and welcome to our weekly wrap. This week we’ve rounded up the latest news that impacts you, including recent Government guidance and measures across the UK, Covid-19 grants and schemes, plus business and tax insights.

Self Assessment 2018-19 daily filing penalties waived by HMRC

Daily tax penalties will not be charged for taxpayers who have been late in filing their 2018-19 tax returns due to the effects of the pandemic.

Daily penalties are usually charged at £10 per day for each day the return is more than three months late, for a maximum of 90 days.

HMRC has recognised the difficult circumstances many taxpayers faced due to the impact of the pandemic, particularly during the period when the daily penalties accrued.

The six-month and 12-month penalties will be charged as usual for late 2018/19 tax returns. A £300 (or 5% of the tax due if greater) penalty is charged when a return is six months late and again when the return is 12 months late.

SEISS 2nd grant last chance

Claims for the second SEISS grant must be made on or before October 19, 2020 and must be made by the taxpayer. Grants are paid within six working days of the claim being submitted.

The 2nd taxable grant is worth 70% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The grants are subject to income tax and self-employment national insurance contributions in the 2020/21 tax year.

Self-employed individuals and members of a partnership are eligible where the taxpayer:

  • Submitted their self assessment tax return for the tax year 2018/19 by April 23, 2020
  • Traded in the tax year 2019/20
  • Intends to continue to trade in the tax year 2020/21
  • Carries on a trade which has been adversely affected by coronavirus

If employers or taxpayers have claimed too much for a CJRS or SEISS grant and have not repaid it, they must notify HMRC and repay the money as part of their next online claim by the latest of whichever date applies below:

  • By October 20, 2020
  • 90 days after the date you received the grant you were not entitled to
  • 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed

Covid Corporate Financing Facility

The Government has introduced a new access review process for companies applying for support under the Covid Corporate Financing Facility (CCFF).

The scheme helps large businesses affected by coronavirus through the purchase of their short-term debt.

As of last Friday (October 9), eligible large firms will now be asked to provide an up to date credit rating when requesting financing from the scheme. Where the firm’s credit rating has dropped below investment grade, the Treasury will ask for additional information before deciding the appropriate level of support.

The Covid Corporate Financing Facility (CCFF) has provided £30bn of direct support to some of the economy’s largest firms, who are responsible for almost 2.5 million jobs in the UK.