The 31 January 2022 deadline for taxpayers to file their 2020/21 tax returns is quickly approaching. In light of this, HMRC announced on 6 January 2022 that late filing and late payment penalties will be waived for one month for Self Assessment taxpayers who are yet to submit their 2020/21 tax returns. The announcement was made as a result of the extra pressures taxpayers and their agents are facing this year with COVID-19. HMRC have acknowledged that COVID-19 could be affecting some taxpayers’ ability to file their tax returns by the 31 January deadline. Although, official HMRC department figures at the date of the announcement show that out of the 12.2 million taxpayers who are required to submit a tax return, nearly 6.5 million t...

Landlords who let Furnished Holiday Lets (FHLs) can benefit from certain tax advantages. The rules that apply to FHLs are distinct and separate from the rules applying to the letting of residential property more generally. Furnished Holiday Lettings – Conditions For a property to qualify as an FHL in the tax year, all of the following conditions must be satisfied: The property is furnished. The property is located in the UK or the European Economic Area (EEA). The property is available for commercial letting as holiday accommodation to the public for at least 210 days in the relevant period (typically the UK tax year). Of the 210 days, the property is actually let out for at least 105 days as holiday accommodation. ...

For those who rely on travelling between countries to perform their everyday employment duties, COVID-19 has caused even more uncertainty and disruption to their travel plans than the rest of the population. If your movements for work have been impacted by COVID-19 with travel restrictions preventing you from leaving the UK, the following article should help provide clarity on your liability to UK income tax on your earnings. Non-UK Residents HMRC have acknowledged that instances arise where a non-UK resident is restricted from leaving the UK due to COVID-19, and consequently carries on working in the UK unexpectedly. With the above in mind, HMRC’s guidance states that the UK will not tax the employment income of a non-UK residen...

The Coronavirus Job Retention Scheme (“CJRS”) has assisted over one million employers since its announcement by Chancellor Rishi Sunak in March 2020. The scheme has been a lifeline for many businesses and the scheme has been extended further until 31 March 2021. Despite this, there has been widespread reports that the CJRS has been targeted by fraudulent claims and claims made in error. Previously speaking in September 2020, Jim Harra, HMRC’s Permanent Secretary, stated to MP’s: “We have made an assumption for the purposes of our planning that the error and fraud rate in this scheme could be between 5% and 10%” ..."That will range from deliberate fraud to error".  Updated Guidance HMRC have recently updated its CJRS...

Boris Johnson addressed the nation last Saturday evening (31.10.20) to confirm a second national lockdown as a result of the failure of the tiered local approach to contain the soaring infection rates of Covid-19. The lockdown calls for restaurants, pubs, gyms and non-essential retail shops to remain closed during the period of the four week national lockdown which commences today (05.11.20) and is due to expire on 2 December 2020. Unlike the first lockdown, schools and universities will remain open. Due to this aforementioned announcement, the Government has also announced further support to help afflicted business and households which can be summarised as follows: Furlough Scheme The Coronavirus Job Retention Scheme (CJRS) or f...

Last month, the Chancellor of the Exchequer Rishi Sunak announced that as part of the Government’s ‘Winter Economy Plan’ taxpayers who complete self-assessment tax returns can now defer their tax liabilities using HMRC’s formerly established Time to Pay self-service facility. Following the announcement, HMRC have now confirmed more details about the practicalities of the scheme. One of the Government’s previous measures was that taxpayers who were required to make payments on account for 2019/20 following submission of their 2018/19 tax returns (i.e. those with a tax bill of above £1,000 or those who had paid less than 80% of all tax owed) in July 2020 could defer this payment until January 2021 if they have been affected b...

Following yesterday’s cancellation of the proposed autumn budget, the Chancellor of the Exchequer Rishi Sunak spoke in Parliament today (24.09.20) to address the next phase of the Government’s economic support during this crisis, dubbed their ‘Winter Economy Plan.’ The chancellor began his speech on a positive note, stressing that the UK is in a better economic position than in March, however he emphasised the need for more financial provisions to accompany the realisation that the virus will remain prevalent for months to come. The measures outlined today can be summarised as follows: 1. Jobs Support Scheme (JSS) The JSS will replace the furlough scheme (officially known as the Coronavirus Job Retention Scheme) ...

The Coronavirus pandemic has not only endangered the health of the UK, but it has also had a huge impact on the economy. This financial strain has led to many people choosing to give up/use some of their income to support: 1) Businesses or employers; or 2) Charities. But what are the tax implications of these acts of generosity? Supporting a business or an employer People are showing support for a business or an employer in several ways such as: 1) waiving salary or bonuses before they are paid; 2) waiving dividends; or 3) giving salary or bonuses back to a business or employer after they have been paid. The tax treatment of this support depends on which route is taken (i.e. 1, 2 or 3). 1. Waiving salary or bonuses before they are...