Coronavirus (COVID-19)—tax implications
Coronavirus (COVID-19)—tax implications

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—tax implications
  • EMPLOYMENT
  • Coronavirus job retention scheme (CJRS)
  • Temporary tax exemption for reimbursed coronavirus-related home office expenses
  • Income tax and NICs exemptions for coronavirus tests provided or reimbursed by employers
  • Self-isolation support payments
  • NICs exemption
  • Reporting for tax purposes
  • Tax treatment of personal protective equipment (PPE)
  • Tax-efficient provision of cycles and cycling equipment
  • More...

The government has announced a number of measures in response to the coronavirus (COVID-19) crisis either that relate specifically to the UK tax regime, or that HMRC is administering.

HMRC has launched a business support finder tool to help businesses and self-employed people to determine quickly and easily what financial support is available to them. See: Find coronarvirus support for your business.

For ease of use, this Practice Note is split into sections as follows:

  1. EMPLOYMENT

  2. SELF-EMPLOYMENT

  3. VAT

  4. STAMP TAXES

  5. INTERNATIONAL

  6. TAXES MANAGEMENT AND LITIGATION, and

  7. INCENTIVISED INVESTMENT

EMPLOYMENT

Coronavirus job retention scheme (CJRS)

The coronavirus job retention scheme (CJRS) provides support to employers with a UK payroll in the form of a grant to assist with salary payments to ‘furloughed’ employees during the coronavirus pandemic. The original version of the scheme was announced on 20 March 2020 and initially provided for a grant of 80% of employees’ salary (up to £2,500 per employee per month) for furloughed employees (backdated to 1 March 2020 provided that, among other things, those employees were on the relevant business’ PAYE payroll on 19 March 2020). The CJRS was originally due to finish at the end of May 2020, but was subsequently extended a number of times (until the end of June 2020, then the end of October 2020, then 2 December 2020, then 31 March 2021 then 30 April 2021 and then

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