24 January, 2022 in Industry News

Covid-19 Support and Tax Updates

In this CavanaghKelly update, we outline the latest Covid-19 financial support funds and highlight key tax updates and changes.

Covid-19

Economic Recovery Innovation Grant (ERIG)

Invest Northern Ireland’s new £4 million innovation grant for SME’s launched to support businesses in the development and implementation of innovation projects.
ERIG will provided eligible businesses with up the £5,000 (taxable) to help businesses develop new, or improve existing products, services or processes through innovation. The grant will support eligible costs, including:

  • Testing and developing new products or processes
  • Equipment
  • Skills development
  • Marketing
  • Consultancy

For further information on eligibility criteria, click here.

Applications close at 5pm on Sunday 13 March 2022, however grants are allocated on a first-come, first-served basis, therefore if the available budget is allocated before this date, Invest NI reserves the right to close applications early.

For further details and to apply for the scheme, click here.

Omicron Hospitality Payment

Over 3,200 hospitality businesses may be eligible for a one-off grant payment under this newly announced financial support scheme.

Payment levels will align with the Net Annual Value (NAV) for the relevant business property, as follows:

  • £10,000 for businesses that are the primary occupant operating from a property with a Net Annual Value (NAV) up to £15,000; or businesses that are occupied as part of a property
  • £15,000 for businesses that are the primary occupant operating from a property with a Net Annual Value (NAV) between £15,001 and £51,000
  • £20,000 for businesses that are the primary occupant operating from a property with a Net Annual Value (NAV) over £51,000

Application Process:
Eligible businesses should receive a Land &Property Services email which will include a link to the online form, which businesses must complete in order to receive the payment.

If you have not previously received Localised Restrictions Support Scheme (LRSS) payments and feel your business may be eligible for this Omicron support payment, click here to find out further information on how to apply.

COVID Recovery Programme for Organisations

There are currently a number of funding schemes available for eligible organisations operating with deficits that have arisen in the 2021-22 financial year, due to the pandemic. The Department of Communities (DfC) has launched the Covid Recovery Programme, to provide awards of up to £50,00 and more organisations in exceptional circumstances.

Covid Recovery Programme funding for the relevant sectors and organisations include:
• Arts Council
• NI Screen
• Sport NI
• National Lottery Heritage Fund
• Glór na nGael
• Ulster-Scots Agency
• Community Finance Ireland

For further information on these funds and the deadlines for applications, click here.

Self assessment Taxpayers Must Declare COVID Grants on Tax Returns

HMRC has reminded self assessment taxpayers to declare any COVID-19 grant payments on their 2020/21 tax return. More than 2.7 million HRMC customers claimed at least one Self-employment Income Support Scheme (SEISS) payment up to 5 April 2021.

The tax authority says these grants are taxable and customers should declare them on their 2020/21 tax return before the deadline on 31 January 2022.

The SEISS is not the only COVID-19 support scheme that customers should declare on their tax return. Information on which support payments need to be reported to HMRC and any that do not is available on GOV.UK.

For further information, click here

 

Tax Updates

HMRC Waives Self Assessment Penalties for One Month to Ease COVID-19 Pressures

HMRC is waiving late filing and late payment penalties for self assessment taxpayers for one month. The measure will give those taxpayers affected by coronavirus (COVID-19) extra time, if they need it, to complete their 2020/21 tax return and pay any tax due. HMRC is still encouraging taxpayers to file and pay on time if they can. The tax authority also revealed of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February; and
  • anyone who cannot pay their self assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.

However, interest will be payable from 1 February.

For further information, click here.

Three-day Wait for Statutory Sick Pay in 2022

The standard three-day waiting time for Statutory Sick Pay (SSP) will be reinstated for coronavirus (COVID-19)-related claims from 25 March 2022, unless the government intervenes.
Under standard rules in the UK, employers do not have to pay SSP to an employee until the fourth qualifying day in the Period of Incapacity for Work (PIW). The PIW is a period of sickness lasting four or more consecutive calendar days, not all of which may be classed as qualifying days.

During the pandemic, the government suspended the three-day wait for COVID-related SSP, meaning that employers must pay it from the first qualifying day.

The amendment to the SSP rules, which were made in the Coronavirus Act 2020 are due to expire after two years, meaning that unless there is a government intervention to continue the measure, COVID-related SSP waiting time will automatically revert to three days on 25 March 2022.

For further information, click here.

HMRC Issues Warnings on Self Assessment Scams

HMRC has warned taxpayers completing their 2020/21 tax returns to ‘be on their guard’ and stay vigilant with regards to tax-related scams.

HMRC reported that there were almost 800,000 tax scams in the last year and is believed that scammers use self assessment to attempt to steal money or personal information from taxpayers.
HMRC have warned taxpayers ‘not to be taken in’ by malicious emails, phone calls or texts and to not mistake them for genuine HMRC communications.

Myrtle Lloyd, Director General for Customer Services at HMRC, said:
'Scams come in many forms. Some threaten immediate arrest for tax evasion, others offer a tax rebate. Contacts like these should set alarm bells ringing, so if you are in any doubt whether the email, phone call or text is genuine, you can check the 'HMRC scams' advice on GOV.UK and find out how to report them to us.'

The self assessment deadline is Monday 31 January 2022.

For further information, click here.

HMRC Latest Guidance for Employers

HMRC has published the latest edition of the Employer Bulletin. This guidance for employers, and their agents, includes articles on:

  • reporting PAYE information in real time when payments are made early at Christmas
  • preventing and correcting payroll errors
  • Health and Social Care - National Insurance contribution increase
  • UK-Swiss Convention on Social Security Coordination
  • COVID-19 - summary of guidance published by HMRC
  • VAT Reverse Charge on construction and building sites
  • reporting benefits and expenses in real time
  • notifying HMRC when you stop employing people.

If you have any questions about any topics addressed within this article, contact us.

Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.