Covid-19 developments relevant to tax
Covid-19 developments relevant to tax
Fri 22 May 2020
The tax implications of the way HMRC is refining tax administration as a result of Covid-19 is continually evolving. There is a range of information and links relating to Covid-19 available on the Mazars UK website here.
The points below are tax points of detail that may be of interest:
- Certain PAYE filing deadlines. There is no formal extension of time limit for filing P60, P11d or PAYE settlement arrangement information with HMRC. However HMRC has indicated that a Covid-19 reason for late filing will be considered in the context of whether this is a reasonable excuse.
- Payments under the coronavirus job retention scheme (CJRS) will be within the remit of a Senior Accounting Officer (SAO) for those larger companies/groups subject to that regime.
- Covid-19 grants are outside the scope of VAT for both input VAT and output VAT
- The deadline for making an option to tax (OTT) in respect of an interest in land where the decision to opt to tax is made between 15 February and 30 June 2020 (previously to 31 May 2020) is being temporarily extended. The 30 day time limit is extended to 90 days. There are also procedures for submitting the OTT form electronically.
- In a written ministerial statement, Financial Secretary to the Treasury, Jesse Norman, has as indicated there will be an employment tax exemption for reimbursement of certain home-working expenses. The exemption will be operated from 16 March 2020 to 5 April 2021.
- The coronavirus job retention scheme will be extended to the end of October 2020.
- The Government has announced a three month extension for appealing any HMRC decision dated 20 February 2020.
For a further discussion of tax issues relating to Covid-19, please get in touch with your usual Mazars tax contact or one of the Mazars contacts noted here.
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