CIS update
A reminder that the proposed changes to the CIS scheme regarding the charging of VAT through the supply chain have been postponed until March 2021. Further details will follow on how to operate under the new scheme.
CJRS and flexible furloughing
From 1 July the furlough scheme has gone flexible with changes now taking place on how to calculate what can be reclaimed changing each month until the end of October 2020 when the scheme currently ends. There is no information yet on whether the government may extend this for local area lockdowns but EU law states that the grant scheme must end on 31 December 2020 at the very latest. For further information on how to calculate flexible furlough figures, see the technical Update article in this month’s newsletter.
CJRS claims and amendments
- From this week, it is now possible to delete a CJRS claim provided this is done within 72 hours of submission. However, please be aware that any claims for furlough grants to the end of June must be submitted by 31 July at the latest or funds will be lost.
SEISS grant
A second grant is available to the self-employed for a further three-month period. The online application process opens on 1 August and is based on the same criteria as the first (although there have been some amendments to the calculations for anyone who is returning from parental leave, and anyone serving as a military reservist). You can claim for the second period even if you did not claim for the first. This time, however, it will be only 70% of average profits, not the original 80%. Remember the claim window for the first period closes on 13 July 2020.
Agent Toolkits
HMRC has 19 agent toolkits available for you to download and use here. They have been designed to address the most common errors seen from previous years, and so they now have checklists of the key issues to consider and links to HMRC technical guidance and manuals.
HMRC have also recently refreshed the complete catalogue of toolkits to assist you with completion of:
By identifying the most common errors, this may prompt a conversation between you and your clients to ensure submissions are correct.
Tax Agent registration
ICB is involved in the development of HMRC’s tax agent registration process. The first meeting of the working party is this month and ICB may come out to you for information and views soon. If this happens then all input into this from practising members will be very gratefully received.
