Welcome to the May 2021 Newsletter from Walsh & Co

HMRC recently opened its online service for the self-employed to claim the fourth Self-employment Income Support Scheme (SEISS) grant. Claimants' businesses must have been adversely affected by the coronavirus (COVID-19) pandemic.

Meanwhile, employees working from home as a result of the pandemic will need to make new claims for homeworking tax relief for the 2021/22 tax year. HMRC also outlined that the £6 per week homeworking payment is available in full, even if employees split their time between home and the office.

HMRC opens online service for applications for fourth SEISS grant

The online service for applications for the fourth Self-employment Income Support Scheme (SEISS) grant is now open for claims, HMRC has confirmed.

The fourth grant will be 80% of three months' average trading profits, and can be claimed from late April 2021.

Payment will be in a single instalment capped at £7,500 in total and will cover the period February to April 2021. The scheme has been extended to those who filed a 2019/20 self-assessment tax return prior to 3 March 2021.

Claimants must have been impacted by reduced activity, capacity and demand, or have been trading previously and are temporarily unable to do so. All claims must be made on or before 1 June 2021.

Claimants require their Self Assessment Unique Taxpayer Reference, national insurance number, Government Gateway user ID and password and their UK bank details in order to make their claim.

There is no requirement for an earlier SEISS grant to have been claimed to be able to claim the fourth grant. Applications for the fourth grant can be made here.

If you would like further advice or require a compliance review on your eligibility, please contact us.

New claims required for homeworking tax relief

Employees who are working from home will need to make new claims for tax relief for the 2021/22 tax year, HMRC has stated.

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

HMRC has also confirmed that the £6 per week payment is available in full, even if an employee splits their time between home and the office. The allowance is to cover tax-deductible additional costs that employees who are required to work from home have incurred, such as heating and lighting the workroom, and business telephone calls.

Last year an online portal was launched that allows employees to claim tax relief for working at home. The portal was set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the COVID-19 pandemic.

The portal can be found here.

ESSENTIAL TAX DATES FOR MAY

1 May
Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 April 2021.

19 May
PAYE, Student loan and CIS deductions are due for the month to 5 May 2021.

31 May
End of CT61 quarterly period.

QUOTE OF THE MONTH

'The government should now turn to its build back better agenda: cutting the non-wage costs of employment to spur hiring, ending a debilitating late payment crisis that has worsened through lockdowns and taking innovative approaches to emergency debt to realise meaningful economic value.'

Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), commenting on the business group's call for the government to provide greater support for UK exports.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.

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