HMRC doubles up on SEISS tax
HMRC’s latest guidance on Self-Employment Income Support Scheme (SEISS) payments warns that some taxpayers may be taxed on them twice. What steps are required to prevent this?
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New HMRC guidance on winter fuel payments
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Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
HMRC says that many of the 2020/21 self-assessment tax returns it’s received either include entries for SEISS payments that don’t match the figures it has on record or show nothing at all. As a result, it’s automatically amending those returns and sending out corrected tax calculations.
Taxpayers should of course check HMRC’s amended figures to make sure they reflect only the total of the first, second or third SEISS grants received on or before 5 April 2021. But that’s not all. They should also check that theyreported the SEISS payments in the right box on the tax return. HMRC’s latest guidance instructs where the payments should be shown.
If figures have been entered in the wrong place HMRC will assume the taxpayer hasn’t declared the payments at all. It will automatically add them which will result in the individual being taxed twice on the SEISS payments. To avoid this double taxation, an amended tax return should be submitted, reporting the SEISS figures in the right place and removing them from the part of the tax return where they were originally included.
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