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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Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
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What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
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Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
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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