Here are some important updates on recent announcements that might affect your business including: HMRC have announced that they are launching investigations into 3,000 claims for Coronavirus Job Retention Scheme. Plus, there are £20 million available in new grants to boost recovery of small businesses. Finally, the deadlines for reporting and paying capital gains tax (CGT) on the sale of a residential property have changed. Read on to find out more…
CJRS (Coronavirus Job Retention Scheme) Fraud Investigations
HMRC have announced that they are launching investigations into 3,000 claims for CJRS.
The aim is to investigate where HMRC believe the employer may have claimed more than they are entitled to.
Plus, to check that the business met the conditions for claiming.
The letter asks the business to review their CJRS and to repay the grant voluntarily within a time limit.
HMRC will take action against those who have set out to defraud the system but they have confirmed that their aim is not to target innocent errors.
If there is an agent for payroll then the agent will receive copies of these letters.
It is understood that this is the 1st stage of HMRCs compliance approach and that more employers may be contacted in the future.
The scheme will dispense grants of between £1,000 – £5,000 to small and medium-sized businesses from an overall fund of £20m to help them access professional services advice from accountants, HR experts and lawyers, as well as purchase new technology and equipment.
Interested parties can access the funding – provided by the England European Regional Development Fund – as part of the European Structural and Investment Funds Growth Programme 2014-2020.
There are 38 growth hubs within their Local Enterprise Partnership (LEP) area.
Each LEP has been awarded a minimum of £250,000 to get the programme rolling.
See links below for more information:
Plus… Some Personal Tax News
Change to reporting Capital gains tax on UK property
From 6 April 2020 the deadlines for reporting and paying capital gains tax (CGT) on the sale of a residential property have changed.
Previously, the CGT would be reported on a self-assessment tax return and then paid along with any other tax due in the January following the end of the tax year.
For UK property disposals made from 6 April 2020, you have 30 days after the property’s completion date to report and pay any Capital Gains Tax due on your UK property disposals.
If the tax is not filed and paid HMRC will charge penalties and interest.
The above does not apply to the sale of your PPR (principal private residence)- i.e. the home you reside in. As long as it has been your main residence continuously
It is only due on rental properties/ 2nd homes/ inherited homes/ holiday homes etc.
Please see www.gov.uk/government/news/get-ready-for-changes-to-capital-gains-tax-payment-for-uk-property-sales for more information.
There is a new online service- the seller will have to register/ sign up for the service within their existing HMRC account.
If you complete a self-assessment tax return, the details also need to be included on this.
As CGT has different rates and is calculated based on total income in the tax year, which may not be known at the time of sale, an adjustment to the tax owed may be necessary at the end of the tax year.
This can be done through an adjustment to the original submission (this isn’t available at present and a call to HMRC would be necessary) or via your tax return, if completed.
If you’re a non-UK resident you must continue to report sales or disposals of interests in UK property or land, regardless of whether there is a Capital Gains Tax liability within 30 days of completion of the disposal.
You will no longer be able to defer payment of Capital Gains Tax via your Self-Assessment return, and any tax owed must be paid within the 30-day reporting and payment period.