Weekly tax highlights ― 12 July 2021

Produced by Tolley
Weekly tax highlights ― 12 July 2021

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 12 July 2021
  • Legislation day
  • Legislation Day: Tuesday 20 July 2021
  • Coronavirus (COVID-19)
  • The Tax Credits and Child Benefit (Miscellaneous and Coronavirus Amendments) Regulations 2021
  • Direct Taxes
  • OTS report on making tax easier through smarter use of third party data
  • HMRC's compliance approach for large business
  • Updated HMRC guidance on extended loss carry-back for companies
  • Self assessment return for self-employment income support scheme (SEISS)
  • More...

Weekly tax highlights ― 12 July 2021

Legislation day

Legislation Day: Tuesday 20 July 2021

Draft legislation for the next Finance Bill will be published on Tuesday 20 July 2021.

The Treasury has announced that draft clauses for the next Finance Bill, which will largely cover pre-announced policy changes, will be published on Tuesday, 20 July, together with accompanying explanatory notes, tax information and impact notes, responses to consultations and other supporting documents.

Coronavirus (COVID-19)

The Tax Credits and Child Benefit (Miscellaneous and Coronavirus Amendments) Regulations 2021

Regulations, SI 2021/810 amend the Tax Credits (Definition and Calculation of Income) Regulations, SI 2002/2006 to ensure that payments under the COVID Local Support Grant and equivalent devolved administration schemes are disregarded as income for the purposes of tax credits. The Child Benefit (General) Regulations, SI 2006/223 are also amended.

These Regulations amend SI 2002/2006 to include a reference to the COVID Local Support Grant which means recipients will receive the full benefit of the support payment. The COVID Local Support Grant is an extension and follow-on scheme to the earlier COVID Winter Support Grant. This scheme provides additional support for children, families and the most vulnerable during the period of lockdown restrictions.

These Regulations also correct an error in the previous iteration of item 40 in Table 6 of Regulation 19 of SI 2002/2006 regarding the words ‘over the same period’ by removing the unnecessary wording.

These Regulations also make consequential amendments to SI 2006/223 to extend the definition of ‘approved training’ for the purposes of calculating entitlement to Child Benefit and Child Tax Credit. This is a minor change following the introduction of a new ‘Skills for Life and Work’ training programme for young persons in Northern Ireland.

These Regulations come into force on 29 July 2021.

Direct Taxes

OTS report on making tax easier through smarter use of third party data

The Office of Tax Simplification (OTS) has published a policy paper to set out a vision for how the Government could make tax easier for people through making better use of data held by third-parties,

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