Coronavirus Job Retention Scheme (CJRS)
The Coronavirus Job Retention Scheme has been extended until 30 September 2021. For the month of July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.
For claims from 1st July 2021, employers must top up employees’ wages to make sure they receive 80% of their wages (up to £2,500) for the hours they are on furlough. The caps are proportional to the hours not worked.
Claims for furlough days in July 2021 must be made by 16 August 2021.
Self-Employment Income Support Scheme (SEISS) fifth grant
The online service to claim the fifth grant will be available from late July 2021. You’ll need to confirm that you meet other eligibility criteria when you make your claim.
You must make your claim on or before 30 September 2021.
The fifth grant is different from previous grants. To make your claim, you’ll need to have 2 different turnover figures. You’ll need to work out your turnover for:
- April 2020 to April 2021
- either 2019 to 2020 or 2018 to 2019
There are 2 levels of grant. HMRC will work out your grant amount based on how much your turnover is down by after HMRC have compared your 2 turnover figures.
|How much your turnover is down by||What you’ll get||Maximum grant amount|
|30% or more||80% of 3 months’ average trading profits||£7,500|
|less than 30%||30% of 3 months’ average trading profits||£2,850|
VAT reduction for the UK’s tourism and hospitality sector
The government extension of the temporary reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sector will last until 30 September 2021. A 12.5% rate will apply for the subsequent six months until 31 March 2022.
Temporary Stamp Duty Land Tax (SDLT) cut
From 1 July 2021, the Nil Rate Band will reduce to £250,000 until 30 September 2021 before returning to £125,000 on 1 October 2021.
Tax Credits Renewal
If you’re claiming tax credits, you’ll be sent a renewal pack that tells you how to renew your tax credits. If it has a red line across the first page and says ‘reply now’ you will need to renew your tax credits.
If it has a black line and says ‘check now’, you will need to check your details are correct. If your details are correct you do not need to do anything and your tax credits will be automatically renewed.
You must renew your tax credits by the date shown on your renewal pack. For most people, the date is 31 July 2021.
If you’re an employer and provide expenses or benefits to employees or directors, you might need to file a P11D and pay tax and National Insurance on them.
Examples of expenses and benefits include:
- company cars
- health insurance
- travel and entertainment expenses
The deadline for filing a P11D for the tax year 2020-21 was 6 July 2021.
You’ll get a penalty of £100 per 50 employees for each month or part month your P11D is late. You’ll also be charged penalties and interest if you’re late paying HMRC.
July Payment on Account
If you file a self assessment tax return you may need to make ‘Payments on account’. These are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
You have to make 2 payments on account every year unless:
- your last Self Assessment tax bill was less than £1,000
- you’ve already paid more than 80% of all the tax you owe, for example through your tax code
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
The second payment on account for the 2021-22 tax year will be due by 31 July 2021.