Overclaimed Coronavirus Job Retention Scheme grants

HM Revenue and Customs (HMRC) published guidance on potential penalties to businesses with overclaimed Coronavirus Job Retention Scheme (CJRS) grants. The Government use the Coronavirus Job Retention Scheme to help businesses to retain their staff during this Coronavirus (COVID-19) outbreak. Sometimes, mistakes could happen.

HMRC is asking you to report any overclaimed CRJS grants within the notification period given to avoid expensive penalty. This includes If you received the CRJS and you were not entitled to.

You must pay back the Coronavirus Job Retension Scheme grants you are not entitled to HMRC.

Report overclaimed Coronavirus Job Retention Scheme grants to HMRC

You must notify HMRC within 90 days of you received the CJRS grants if you have not repaid it.

In some circumstance, you may be entitled to the CJRS grants but later due to change of circumstance you no longer entitled to it, in this instance, you have 90 days to inform HMRC. For example, your furloughed staff left your business for good and you continue to claim the CJRS grants for that staff.

The latest date you must report your overclaimed CJRS grants to HMRC is 20 October 2020.

Likewise, if you have been overpaid under Self Employment Income Support Scheme, you must notify HMRC and pay back the money.

Publishing details of deliberate defaulters (PDDD)

HMRC may publish your details on the Publishing details of deliberate defaulters (PDDD) list for deliberately not notify HMRC of the overclaimed CJRS grants. You details will remain online for 12 months.

You may check the current PDDD list online here.

Companies House filings during COVID-19 pandemic

Companies House also provide support to UK businesses during COVID-19 pandemic. Your company’s account filing deadline is extended for an additional 3 months. This will help you to avoid a late filing penalty if you are unable to deliver your company accounts on time during this pandemic. You do not need to do anything. You just need to go to Companies House website to check your new filing deadline.

On the same note, you would have 6 weeks to file your confirmation statement. Likewise, for the events driven filings, you will have 42 days (6 weeks) to notify Companies House instead of the usual 14 days filing deadline. For example, you moved to a new office and this office is also your registered office for your company. In this case, you have 6 weeks to notify Companies House.

In addition, Companies House also created an interim paperless filing service to accept documents which would normally require a live signature.

You are encouraged to submit your documents to Companies House digitally. You can use the web filing service to file the following documents to Companies House.

To file online, you would require your company’s authentication code. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

If you require help with your company’s filings, contact Our accountants. They will be more than happy to assist you.

Zero stamp duty for property valued up to £500K during COVID-19 pandemic

The UK government announced zero stamp duty for property valued up to £500K during COVID-19 pandemic on Wednesday, 8 July 2020. This is a temporary stamp duty holiday that will run from now until 31 March 2021.

This Zero stamp duty for property valued up to £500K during COVID-19 pandemic will undoubtedly boost the UK property market and encourage people to buy properties in the UK now.

Property or lease premium or transfer valueSDLT rateCOVID-19 period
SDLT rate
Up to £125,000Zero
Up to £500,000Zero
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £425,000 (the portion from £500,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%10%
The remaining amount (the portion above £1.5 million)12%12%
Source: GOV.UK

Stamp duty saving if you buy property valued up to £500K now

Let compares the saving, If you buy a house for £570,000 and you are not a first time buyer.

NORMAL SDLTCOVID-19 SDLT
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £320,000 = £16,000
Total SDLT = £18,500
0% on the first £500,000 = £0
5% on the next £70,000 = £3,500
Total SDLT = £3,500

You will save a massive £15,000 on stamp duty land tax (SDLT).

Companies House filings during COVID-19 pandemic

Companies House also step up to support UK businesses during COVID-19 pandemic. They will automatically extend your company’s filing deadline. This would help your business if it is severely affected by the COVID-19 outbreak and help you to avoid a late filing penalty. You do not need to do anything. You just need to go to Companies House website to check your new filing deadline.

On the same note, your confirmation statement filing deadline will also be extended. You would have 6 weeks to file your confirmation statement. Likewise, for the events driven filings, you will have 42 days (6 weeks) to notify Companies House instead of the usual 14 days filing deadline.

In addition, Companies House also created an interim paperless filing service to accept documents which would normally require a live signature.

During this pandemic, you are encouraged to submit your documents online to Companies House. You can use the webfiling service to file the following documents to Companies House.

To file online, you would require your company’s authentication code. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

If you require help with your company’s filings, contact Our accountants. They will be more than happy to assist you.

HMRC payment support service

Contact HMRC payment support service if you foresee that you are unable to pay your tax when it is due in full.

  • Self-Assessment tax bill. Take Note that you can defer your self-assessment payment on account to 31 January 2021. Or pay by instalments.
  • VAT due to HMRC
  • employers PAYE due to HMRC
  • Corporation Tax due to HMRC

Payment support service helpline

HMRC helplinePayment Support Service (PSS)
Telephone:0300 200 3835
Opening times:Monday to Friday: 8 am to 4 pm
Closed on bank holidays.

HMRC would need this information from you when you call

If you foresee you are unable to pay your VAT due to HM Revenue and Customs (HMRC), then please have your VAT number ready.

In addition, of the amount owe to HMRC for your VAT, what is the amount you foresee you can’t pay when it is due. For example, the full VAT amount or only part of it. You must give reasons leading to this unable to pay situation.

Also, how much you can pay now toward the VAT amount going to be due?

Do you have a proposed payment plan in mind? a plan to pay the full or the balance of the VAT amount owed.

Illustration example:

say, the amount you owe is £2,500. You could put aside £800+ a month to settle the VAT within 3 months. Consider proposing your payment plan to the HMRC as follows:

Proposed Plan31 August 202030 September 202031 October 2020
Payment£830£830£840

Also, have your bank accounts details in hand.

Additionally, HMRC may ask you to provide information about your financial affairs including the following:

  • your income and expenditure
  • your assets, like savings and investments
  • what you’re doing to get your tax payments back in order

HMRC will then let you know their decision based on the information you provided to them whether to pay immediately or give you more time to pay.

A similar procedure applies if you would like to have more time to pay your corporation tax or PAYE.

Companies House filings in response to COVID-19 outbreak

Companies House grants an automatic extension for the following filings in response to COVID-19 outbreak (on 27 June 2020).

  • Company accounts filing deadline automatic extension for private (LTD) and public companies (PLCs), limited liability partnerships (LLPs), Overseas Companies and Societas Europaea (SEs).
  • 6 weeks to submit your confirmation statement.
  • Events driven filings deadlines also extend to 42 days, also 6 weeks. For example, you have moved your registered office to a new address. You also have up to 6 weeks to notify Companies House.
  • Mortgage charges registration has a further 10 days, a total of 31 days to submit the document with Companies House.
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