Reminder for companies to include grants on returns
HMRC has published new guidance to companies about the taxation and reporting of coronavirus support payments. What steps should companies take to ensure that the tax return is correct?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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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?
Lack of information
Over the last year or so unincorporated businesses have been bombarded with guidance from HMRC about declaring coronavirus support payments. By comparison, guidance for companies has been sparse but HMRC has now updated its guidance.
Corporation tax return
When completing a company self-assessment tax return or checking one prepared by an accountant, HMRC says that special care is needed regarding Coronavirus Job Retention Scheme (CJRS) grants and Eat Out to Help Out payments. If a company received either or both types of payment in the corporation tax (CT) period covered by the return, it must both:
- include it as income when calculating taxable profits in line with the relevant accounting standards; and
- report it separately on the company tax return using the special CJRS and Eat Out to Help Out boxes.
How much to declare
When calculating the amount of CJRS payments to declare in Box 471 on the company’s CT return it must not deduct any amounts:
- which were voluntarily disclosed to HMRC as CJRS overpayments, even if the company has repaid them
- that have already been assessed by HMRC, even where the company accepted and paid the assessment
- received that the company was entitled to but repaid voluntarily.
Conversely, the company must add any overpayments of amounts received in an earlier CT period that have been set off against CJRS payments received in the accounting period for which it is now completing a tax return
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