Employment & Payroll taxes update

As we were concentrating on the BUFDG tax conference last week, I didn't post any employment & payroll tax updates.  This article provides all those updates in one place, covering JSS, JRS, JRB, NIC, NHSTT - if it's got an acronym, it's in!

Coronavirus Job Retention Scheme

Starting with our favourite (!), CJRS:

• Reminder that October is the last month you can claim CJRS, with reduced financial assistance from the Government (60% of unworked normal hours) whilst employers:
• must ensure employees are paid a minimum of 80% of unworked normal hours
• pay full pension contribution
• pay full employer NIC
• The deadline to submit a claim for CJRS is 30 November 2020 for periods ending on/before 30 October 2020.  If you haven't claimed enough, you'll need to contact HMRC prior to 30 November to amend
• YouTube video about CJRS Part II has been updated to include details of the bonus scheme

Job Retention Bonus (JRB)

HMRC has published more information on how the JRB will work in practice, accessed here, along with producing examples to demonstrate these principles. 

BUFDG will be updating the JRS Part II guidance with details of CJRS, the Job Support Scheme and JRB shortly and will notify members as soon as it's complete.

Test & Trace Support Payments

Low paid employees who are required to self-isolate due to coronavirus (either by positive test or told to do so from NHS Test & Trace), are eligible for £500 hardship payment where they can not carry out their work from home - read our article here.  The Government have published a policy paper ensuring that this payment will not be subject to either employee or employer NIC and regulation SI 2020/1065 will come into force on 22 October.  

Tax after coronavirus

The Treasury Committee launched a new inquiry called Tax after coronavirus, inviting anyone to answer their questions in the call for evidence.  The AAT have published their response here and, no surprises, it calls on the Government to spend more time concentrating on employment status, giving employers more clarity and support.

Scottish Budget consultation

Similar to the 'tax after coronavirus' inquiry, the Scottish government have published a consultation on the 2021/22 budget which you can read here.  The CIOT have issued their response and whilst they do not put forward specific tax policy proposals, they do ask for principles and issues to be borne in mind when the government considers policies.

Tax scams on new university students

More fake tax refund emails are being sent to new university students - HMRC have written to universities advising them to let students know how to spot a scam.  More information can be found here. 

HMRC update on disclosure guidance

HMRC have updated their guidance on using the Worldwide Disclosure Facility to disclose a tax liability relating to offshort issues.

HMRC update on tax, penalties & enquiry settlements

HMRC update their guidance on paying taxes/penalties/enquiry settlement to include information about non-refundable fee for corporate debit cards, introduced from 1 November 2020.

The Low Incomes Tax Reform Group

The LITRG has published 10 ways for employees to boost their income during the pandemic.  These include checking JRS claims, reviewing child benefit charges, marriage allowances, renting out a room in your house, etc.  Read the article here.

Any questions on the above, please email me.