Covid-19 news for June 2020
Covid-19 news for June 2020
Fri 19 Jun 2020
Below is a summary of some of the Covid-19 tax developments in June 2020. There is a range of information and links relating to Covid-19 available on the Mazars UK website here.
- The coronavirus job retentions scheme (CJRS) and self-employed income support scheme (SEISS) to the end of October 2020. There is increased flexibility for CJRS, though limits on who it can apply to. any claim for periods ending on or before 30 June 2020 must be made by 31 July 2020. Claims for flexible furloughing from 1 July 2020 must be made for a minimum of 7 days and you need to be sure of the exact number of hours they have worked. The support under both schemes will gradually reduce.
- The Scottish Government has increased the time period for reclaiming the land & buildings additional dwelling supplement from 18 months to 36 months. There is also a restriction on certain Scottish Government covid-19 grants for claimants with associates in jurisdictions on the EU blacklist.
- The Government has recently announced that it will be giving the input VAT collected on donated PPE goods, to charities supporting the NHS and care workers. This is in respect of such goods acquired between 1 March and 30 April 2020 for which VAT was charged at the standard rate (temporary zero rating of these goods became effective on 1 May 2020). There are some compliance issues for affected donors.
- It was possible to defer the due date for payment of customs duty and import VAT currently due on 15 June. HMRC indicates consideration is being given to the possibility of deferring the 15 July payment.
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.
Coronavirus Job Retention Scheme Update – 4th April 2020
Following the announcement by the Chancellor recently (see here for more details), further clarification has been announced on the CJRS arrangements available to employers to help fund employment costs and reduce the need to make redundancies during these strange and unprecedented times. What was the update? The Government amended previously published guidance to help clarify certain […]
Further Covid-19 tax developments for June 2020
Below is a summary of some of further Covid-19 tax developments in June 2020. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. HMRC has issued new directions for the coronavirus job retention scheme (CJRS) setting out how claims are to be made for flexible furloughing […]
Covid-19 – recent UK developments to end May 2020
The notes below give an indication of the recent developments on covid-19 support in the UK. For further details about these and any other covid-19 developments, please get in touch with your usual Mazars contact. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. Details are […]
Coronavirus Job Retention Scheme (CJRS) – HMRC Update
On 26 March 2020, HMRC published further detailed guidance in relation to the Coronavirus Job Retention Scheme (CJRS). This clarifies a number of points and in this article, we provide more insight. Grant Payments The scheme will pay a grant of 80% of the employee’s salary up to £2,500, together with the employer’s national insurance […]
International tax matters requiring attention sooner rather than later
This note highlights a number of international tax matters which, from a UK perspective, should be being addressed with clients and targets that are potentially within scope. These are: Offshore receipts in relation to intangible property (ORIP). Legislation brining offshore entities within the scope of income tax commenced on 6 April 2019. Thus if within […]
VAT in the UK/EU draft Withdrawal Agreement
The UK Government and the EU issued a joint statement on 19 June 2018 providing an update on the latest areas of agreement in the draft legal text of the Withdrawal Agreement. Since March 2018 new agreements have been reached on matters including goods on the market, Euratom related issues and judicial cooperation in civil […]
A St. Patrick’s Day Surprise for Off Payroll Workers?
Tuesday 17 March was a busy day for the Government. From the growing threat Covid-19 is bringing to the UK and Europe as a whole, to the £330bn financial support announcement for businesses and individuals, it was a day of emotion and bold, unprecedented action. As we were all digesting the announcements made earlier in […]
Covid-19 update: “Plan for People’s Jobs and Incomes” & support for businesses
The Chancellor announces the “Plan for People’s Jobs and Incomes” and provides further support for business as the pubs close for last orders.
Managing your VAT cashflow during a social and economic crisis
As the country grinds to an advised halt, with offices, shops, restaurants and businesses either closing or moving to remote working where possible, you may already be thinking about how the slowing down of the economy will impact on your cashflow. Indeed, since our first comments on the health crisis unfolding across the world, further […]
Update: COVID-19 – Global mobility tax and social security considerations
The world we live in today is more mobile and connected than ever before. We are the first ones in the 21st century to have experienced a whole new digital world, growth in the movement of people and services, which drive innovation and the unification of populations around the world. Even with evolving immigration controls […]
Covid-19 Update – The Chancellor announces the ‘Self Employed Income Support Scheme’
This evening, the Chancellor has announced the much anticipated financial support for the self-employed: the Self-employed Income Support Scheme (The Scheme) The Scheme will pay a taxable grant of 80% of average monthly profits over the last 3 years (based on the tax returns filed for the 3 years to 5 April 2019) up to […]
Current VAT points of interest – VAT and donations, VAT and the construction sector, single and multiple supplies
In this first of a series of VAT updates, we highlight the VAT implications of business donations in response to Covid-19, an upcoming VAT change affecting the construction sector, together with the summary of a recent VAT case regarding single and multiple supplies. Coping with Covid-19 and VAT on donations In the current environment of […]
VAT Cashflow planning: COVID-19
In such challenging times have you had time to understand how to maximise cashflow resulting from the VAT deferral measures granted by the Chancellor? As at 31 March 2020 the VAT payment deferral scheme highlights are: VAT payments for the next VAT return (meaning payments due between 20/3/2020 and 30/6/2020) can be deferred until 31/03/2021; […]
Finance Bill 2019-20 receives Royal Assent on 22 July 2020
Finance Bill 2020 received Royal Assent on 22 July 2020 (see here). In relation to Covid-19, perhaps the most immediate consideration for those that have received support payments such as under CJRS, is that: Employers that have either knowingly misused the furlough scheme, or think they may have accidentally done so, have a 90-day window […]
Import duty and VAT relief for certain medical equipment and materials
HMRC has announced a relief which allows for certain goods, including medical equipment, crucial to the fight against coronavirus, to be imported free of VAT and customs duties. In addition, in the case of Pfizer (Case C-182/19) the CJEU has held that an EU Directive applying a tariff to certain medical equipment (instead of exempt […]
Covid-19 guidance on UK tax residence for individuals and companies
HMRC has added guidance to its manuals on its approach to determining UK tax residence for individuals and companies. Personal tax statutory residence test (SRT) – RDRM11005 UK permanent establishments – INTM261010 Corporate residence – INTM120185 In addition the UK Chancellor of the Exchequer, Rishi Sunak, has announced a temporary relaxation to the SRT for […]
Covid-19 developments relevant to tax
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 […]
What to do if you have paid VAT instead of deferring it during the COVID-19 VAT deferral period
HMRC have set out the procedure for taxpayers to reclaim VAT they have paid in error (e.g. Direct Debits not cancelled) when they meant to defer the payment with a VAT return under the COVID-19 VAT deferral easement. HMRC have announced that a refund can be claimed if a Direct Debit was not cancelled in […]
EMI working hours commitment amended to take account of Coronavirus work interruptions
Finance Bill 2020 includes an amendment to enterprise management incentive (EMI) rules on working time commitments for employees, to ensure that employees are not adversely affected by not being able to work during the period beginning with 19 March 2020, and ending with 5 April 2021 for reasons connected with Coronavirus disease (within the meaning […]
Can I still pay dividends in a world full of furlough?
The current economic environment has been described in many ways from “challenging” to “brutal” and “utterly depressing”. In the UK Over 9m employees are and have been on furlough since 1st March and over £25bn paid out by the Government via the Coronavirus Job Retention Scheme (CJRS). However, following ‘Independence Day’ on 4th July, we […]
Implications for VAT of Brexit transition withdrawal agreement
On 19 March 2018 the EU and UK reached agreement on the withdrawal arrangements for Brexit. The UK will leave the EU on 29 March 2019, but the transition period will last until 31 December 2020. In relation to Customs duty and VAT and excise duty, the following points should be noted: The existing customs […]