Budget 2021

March 3rd, 2021  |  Published in Uncategorized

Extension to the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021.

The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.

For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, employers will need to fund the difference between this and the CJRS grants themselves. Employers can also top up wages above the 80% if they wish, but they are not required to do so.

Employers must also continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from their own funds.

CJRS eligibility from May

For periods from 1‌‌ ‌May 2021 onwards, employers will be able to claim for eligible employees who were on employers’ PAYE payrolls on 2 March 2021. This means they must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying us of earnings for that employee.

You do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria.

For more information on the extension to the scheme and the support available, search ‘Job Retention Scheme’ on GOV‌‌‌.UK.

Check if you and employees are eligible and work out how much they can claim using our CJRS calculator and examples, by searching ‘Job Retention Scheme’ on GOV‌‌‌‌‌‌‌‌.UK.

Keep records that support the amount of CJRS grants you claim, in case HMRC need to check them.


Self-Employment Income Support Scheme – future grants confirmed

The UK Government has today announced that the Self-Employment Income Support Scheme (SEISS) will continue until September with a fourth and fifth grant.

The fourth and fifth grants will take into account submitted 2019-20 tax returns. This means you may be able to claim, even if you were not eligible for previous grants. You must have submitted your 2019-20 tax returns by 2 March 2021 to be eligible for the fourth and fifth grants.

Fourth SEISS grant

The UK Government will pay a taxable grant which is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant is based on an average of trading profits for up to four tax years between 2016 to 2020, where available.

The grant will be available to claim from late April. As with previous grants, trading profits must be no more than £50,000 and at least equal to non-trading income in order to claim the fourth SEISS grant.

Eligibility for the fourth SEISS grant will also depend on whether you experienced a significant financial impact from coronavirus between February 2021 and April 2021.

As the calculation now takes into account the tax year 2019-20, clients who previously claimed SEISS grants may receive grants that are higher or lower in value than any previous SEISS payments they received.

HMRC have moved quickly to ensure they have the information we need to check customers’ eligibility before applications are open, while also protecting the SEISS from fraud. Where HMRC need to make further checks, they will write to customers and explain that they will call them to ask for proof of identity and evidence of trade.

Further details of the scheme can be found by searching ‘Self Employed Income Support Scheme’ on GOV‌‌‌.UK.

How you can claim the fourth SEISS grant

From mid-April, you will be given their personal claim date by HMRC which confirms the earliest date they can claim.

The online claims service for the fourth grant will be live from late April. This is to allow HMRC time to process recently submitted 2019-20 Self Assessment tax returns.

You must make their claim for the fourth grant between your personal claim date and 31‌‌ ‌May 2021 at the latest.

You will need to make an honest assessment that there has been a significant reduction in trading profits due to reduced demand or their inability to trade, and to keep appropriate records as evidence.

Fifth grant

The UK Government has also announced that there will be a fifth and final SEISS grant covering May to September. The amount of the fifth grant will be determined by how much your turnover has been reduced.

The grant will be worth 80% of three months’ average trading profits, capped at £7,500, for those with a higher reduction in turnover (30% or more). For those with a lower reduction in turnover, of less than 30%, then the grant will be worth 30% of three months average trading profits.

Your will be able to claim the fifth grant from late July if eligible. Further details will be provided on the fifth grant in due course.

Questions and answers on SEISS:

When will further guidance be available?

HMRC will publish more guidance in due course.

How will taxpayers receive their personal claim date?

HMRC will contact you from mid-April by email, letter or SMS, depending on the information provided previously.

What can customers do to prepare?

HMRC will send details of how to make a claim when they contact customers with their personal claim date.

In the meantime, to confirm eligibility and make a claim, customers should ensure they have the following to hand:

  • National Insurance number
  • Self Assessment Unique Taxpayer Reference (UTR)
  • Government Gateway user ID and password
  • bank account number and sort code.

Those claiming SEISS for the first time may be asked additional questions to prove their identity. These customers should be ready to answer questions about the following documents, which HMRC recommend they have to hand:

  • UK passport
  • credit file (such as loans, credit cards or mortgages)
  • Self Assessment tax return (within the last 3 years)
  • driving licence (DVLA UK or DVA NI)
  • tax credit claim
  • P60
  • three most recent payslips.