Anna’s Accountancy Alerts – Week 42 (17th – 23rd January 2022)

Multi ethnic business people, entrepreneur, business, small business concept

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SEISS grants

HMRC has reminded self assessment taxpayers to declare any COVID-19 grant payments on their 2020/21 tax return.

According to HMRC, more than 2.7 million 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.

Reporting coronavirus (COVID-19) grants and support payments – GOV.UK

Late payment crisis

More than 440,000 small firms could be forced out of business by the late payment crisis, according to the Federation of Small Businesses (FSB).

An FSB study of more than 1,200 business owners found that close to one in three has seen late payment of invoices increase over the last three months, with a further 8% experiencing other forms of poor payment practice.

As a result, 8% of small businesses say late payments are now threatening the viability of their business. This equates to 440,000 of the estimated 5.5 million small businesses in the UK.

Electronic payment deadline falls on a weekend

In January 2022, the electronic payment deadline of the 22nd falls on a Saturday. To make sure your payment for that month reaches HMRC on time, you need to have cleared funds in HMRC’s account by 21 January 2022 unless you are able to arrange a Faster Payment.

Remember that it’s your responsibility to make sure your payments are made on time and if your payment is late, you may be charged a penalty.

Find out more information on paying your employer’s PAYE electronically.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.