Coronavirus Job Retention Scheme (CJRS)
For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you’ve made a PAYE RTI submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. The amounts that can be claimed for are as follows:
- May 2021 – 80% of wages up to a maximum of £2,500
- June 2021 – 80% of wages up to a maximum of £2,500
- July 2021 – 70% of wages up to a maximum of £2,187.50
- August 2021 – 60% of wages up to a maximum of £1,875
- September 2021 – 60% of wages up to a maximum of £1,875
The deadline for making a claim for furlough days in May 2021 is 14 June 2021.
Self-Employment Income Support Scheme (SEISS) fourth grant
The fourth grant is calculated at 80% of 3 months’ average trading profits. It will be paid out in a single instalment and capped at £7,500 in total. How much you receive will depend on your average trading profits.
The grant is subject to Income Tax and self-employed National Insurance Contributions. It must be reported on your 2021 to 2022 Self Assessment tax return.
The deadline for making a claim is 1 June 2021.
VAT Deferral Scheme
If you deferred VAT payments due between 20 March 2020 and 30 June 2020 you can join the VAT deferral new payment scheme – the online service is open between 23 February 2021 and 21 June 2021. The new scheme lets you pay your deferred VAT in equal instalments, interest free and choose the number of instalments, from 2 to 11 (depending on when you join). If you join by 21 June 2021 you can pay in a maximum of 8 instalments.
VAT reduction for the UK’s tourism and hospitality sector
The government will extend the temporary reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sector until 30 September 2021. To help businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply for the subsequent six months until 31 March 2022.
Temporary Stamp Duty Land Tax (SDLT) cut
The government will extend the temporary increase in the residential SDLT Nil Rate Band to £500,000 in England and Northern Ireland until 30 June 2021. 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.
Reporting Expenses and Benefits
If you’re an employer and provide expenses or benefits to employees or directors, you might need to tell HM Revenue and Customs (HMRC) and pay tax and National Insurance on them. Examples of expenses and benefits include:
- company cars
- health insurance
- travel and entertainment expenses
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits. You must submit your P11D form online for the 2020/21 tax year by 6 July 2021.
Lease Rental Restriction
For businesses that hire or lease their cars, tax relief is limited for higher emitting vehicles. For cars hired through leases from April 2021, the CO2 emission threshold has reduced from 110g per km to 50g per km, in line with the reduction to the threshold of the main rate of capital allowances for business cars.
The lease rental restriction amounts to 15% of the hire costs of the car, which for cars leased from April 2021, will mean that the relief available for cars with CO2 emissions exceeding 50g per km will be limited to 85% of those hire costs. Cars with CO2 emissions of 50g per km or below will be available for 100% relief on hire costs.
HMRC CIS set-off amendment
New legislation from 6 of April 2021 will allow HMRC to amend errors or omissions relating to the CIS deduction incurred figure claimed on a customer’s Employer Payment Summary return. This will prevent certain customers from making further similar claims within a tax year, where customers do not provide evidence of eligibility or evidence of sums deducted, and do not correct their Employer Payment Summary at HMRC’s request.
Child Benefit payments will increase from 12 April 2021 to a weekly rate of £21.15 for the first child and £14.00 for each additional child. If you receive Child Benefit payments, and your or your partner’s income is over £50,000, you may have to pay the High Income Child Benefit Charge. The charge increases gradually by 1% for every £100 of income over £50,000. At £60,000 the charge is equal to 100% of the Child Benefit entitlement.
You may still claim Child Benefit by completing the form, but choose not to get the payments, which means they do not have to pay the charge but still receive the associated National Insurance Credits and build entitlement to your State Pension. It will also help your children get their National Insurance number automatically when they turn 16.
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.