Weekly tax highlights ― 7 June 2021

Produced by Tolley
Weekly tax highlights ― 7 June 2021

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

  • Weekly tax highlights ― 7 June 2021
  • Direct taxes
  • HMRC guidance: extended loss carry-back for companies
  • Self-Employment Income Support Scheme fifth grant
  • Indirect taxes
  • VAT road fuel scale charges
  • Consultations
  • Government responds to Treasury Committee's 'Tax after Coronavirus' report
  • Public comments: OECD's consultation on proposed changes to treaty commentary on interest deductions
  • International
  • More...

Weekly tax highlights ― 7 June 2021

Direct taxes

HMRC guidance: extended loss carry-back for companies

HMRC has updated its guidance on claims for extended loss carry-back claims for companies.

HMRC has confirmed in Chapter 3 of the guidance that companies do not need to submit an amended company tax return for claims for the accounting periods covered by the extended relief. Amended returns submitted on the online portal for the accounting periods for the extended relief claim will be rejected as the time limit on amendments will have passed. A claim made in the company tax return for the accounting period of the loss will be treated as an amendment to those earlier returns.

Self-Employment Income Support Scheme fifth grant

The online claims service for the fifth Self-Employment Income Support Scheme (SEISS) grant covering May 2021 to September 2021 will be available from late July 2021.

To be eligible for the fifth grant, taxpayers must be self-employed or a member of a partnership and must have traded in the last two tax years and expect to see a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 May 2021 to 30 September 2021.

The amount of the fifth grant will be determined by the reduction in turnover in the year from April 2020 to April 2021:

  1. where turnover is reduced by 30% or more, the grant will be 80% of 3 months’ average trading profits, up to a maximum of £7,500

  2. where turnover is reduced by less than 30%, the grant will be 30% of 3 months’ average trading profits, up to a maximum of £2,850

The grant is taxable and will be paid out in a single instalment. HMRC will publish guidance on claiming the grant, and information to help businesses calculate how turnover has been affected, by the end of June 2021.

Indirect taxes

VAT road

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