Declaring coronavirus grants on tax returns
Coronavirus (COVID-19) grants to support businesses and individuals during the pandemic are taxable. If you claimed grants from the Coronavirus Job Retention Scheme (CJRS), Eat Out to Help Out (EOTHO), Self-Employment Income Support Scheme (SEISS), you’ll need to report this as income on your Company Tax Return (CT600), partnership return (SA800) or the self-employment pages of your individual tax return (SA103) depending on your business type.
If you have already filed a return and have not declared your coronavirus support grants or payment as taxable income, you will need to submit an amended return.
If you received a CJRS grant you will also need to declare the amount you received (box 471 in the CT600 tax return), the grant you were entitled to (box 472), and any CJRS overpayment already assessed or voluntarily disclosed (box 473) during the accounting period covered by your CT600 return. You will need to complete box 474 if you received any EOTHO overpayments.
If you or your agent submitted a CT600 return without boxes 471 to 474 and 526, or left the boxes incomplete, and you have a CJRS or EOTHO overpayment to report you need to amend your return.
If all coronavirus support overpayments are already repaid or have already been assessed before the tax return is filed – and there’s no coronavirus support schemes overpayment due – you do not have to correct your return. More information on this is available in the Company Tax Return guide.
Notifying HMRC when you stop employing people
Many employers believe when they close their company through Companies House, HMRC are notified, but this is not the case.
It is important you notify HMRC straightaway when your company stops employing people. This will prevent the unnecessary issue of specified charges and penalty notifications from HMRC.
There is more information available on how to stop being an employer.
Tax avoidance - don’t get caught out (update)
HMRC’s refreshed ‘Tax avoidance – don’t get caught out’ campaign helps contractors who are employed through an umbrella company or an agency, or are self-employed, to understand their pay arrangements, so they don’t get an unexpected tax bill.
Some ‘umbrella companies’ try to break the tax rules. Contractors or agency workers who may be employed through an ‘umbrella company’ can read the guide what it’s like to work through an umbrella company to see if they are at risk of tax avoidance.
Contractors can check they may not be caught up in tax avoidance by understanding how they’re being paid and making sure they are paying the right amount of Income tax and National Insurance contributions. HMRC’s new payslip guide helps explain what their payslip should look like and the new interactive risk checker helps contractors see if their current contract could involve tax avoidance.