From Mark Coleman, Director of Tax
As previously announced, the JSS is to replace the Coronavirus Job Retention Scheme from 1 November 2020. However, the Chancellor has now announced increased levels of support available under the JSS. The changes announced are as follows:
The government calculates the above will provide an employee earning up to £3,125 per month with 73% of their normal pay. At a salary of £3,125 per month, after reclaiming the government’s contribution the employer’s cost will be £750 before employer’s National Insurance Contributions and employer pension costs.
Further details concerning the revised JSS are at https://www.gov.uk/government/news/plan-for-jobs-chancellor-increases-financial-support-for-businesses-and-workers
Self Employment Income Support Scheme (SEISS)
The first of two further SEISS taxable grants, which can be claimed in November 2020, has been increased from 20% to 40% of average profits up to a maximum claim of £3,750. This can be claimed provided the taxpayer is actively continuing to trade but is suffering reduced demand due to coronavirus from 1 November 2020 to the date of claim. The level of the second further grant payable in early 2021 is under review. Further details of how to claim will be provided in due course.
Deferral of income tax payments
One of the government’s first support measures was to permit individual taxpayers to defer their 31 July 2020 income tax liabilities to 31 January 2021. No interest or penalties will be charged provided the deferred liabilities are settled in full by 31 January 2021.
It was later announced that income tax liabilities due on 31 January 2021, including any deferred 31 July 2020 liabilities, totalling up to £30,000 can be deferred and settled in instalments over a 12 month period to 31 January 2022.
The application for this further deferral should be made online at https://www.gov.uk/difficulties-paying-hmrc however, please note that interest, currently at 2.6%, will be applied on this further deferral.
The online application should be automatically accepted provided there are no outstanding tax returns, the taxpayer has no other tax debts or time to pay arrangements and the tax due is not more than 60 days overdue. If these conditions cannot be satisfied, or the total liability exceeds £30,000, it may still be possible to agree a time to pay arrangement by telephone with HMRC.
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