Owner-Managed Businesses

Weekly tax highlights ― 6 December 2021

Produced by Tolley
  • 17 Dec 2021 16:40

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

  • Weekly tax highlights ― 6 December 2021
  • Coronavirus (COVID-19)
  • Reporting coronavirus grants and support payments
  • Coronavirus Job Retention Scheme: correcting underpayments
  • Direct taxes
  • Income Tax (Exemption of Social Security Benefits) Regulations, SI 2021/1341
  • Income Tax (Qualifying Child Care) (Wales) Regulations, SI 2021/1344
  • Pension schemes newsletter 135: November 2021
  • Administration and Anti-avoidance
  • Tax Administration and Maintenance Day: 30 November 2021
  • More...

Weekly tax highlights ― 6 December 2021

Coronavirus (COVID-19)

Reporting coronavirus grants and support payments

HMRC has updated its guidance to confirm that COVID-19 grants and support payments are taxable and need to be declared on company tax returns.

‘Reporting coronavirus (COVID-19) grants and support payments’ sets out which grants and support payments should be reported on tax returns and, in a new addition to the section ‘How to report a grant or payment’, confirms the following for company tax returns:

  1. companies which received a grant under the Coronavirus Job Retention Scheme (CJRS) or an Eat Out to Help Out payment, will need to include the grant/payment as income when calculating taxable profits in line with the relevant accounting standards and report the grant/payment separately on the company tax return using the CJRS and Eat Out to Help Out boxes

  2. companies should also record all other taxable COVID-19 payments as income when calculating taxable profits

HMRC’s Stakeholder Digest of 30 November 2021 includes a reminder to report COVID-19 support grants and payments on the company tax return. The Digest also notes that returns may require amendment if they were submitted without the necessary information.

Coronavirus Job Retention Scheme: correcting underpayments

HMRC has added a new section to its Coronavirus Job Retention Scheme guidance setting out how businesses should top up employees’ wages where they claimed a grant but did not pass on the full benefit.

The new section ‘If you’ve not paid your employees enough’ confirms that, for each claim period where businesses have claimed a grant,

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