The government’s coronavirus support schemes will be extended

Coronavirus Job Retention Scheme (CJRS) The CJRS was extended for a sixth time. Instead of ending at the end of April the scheme will remain available until the end of September 2021. Support will reduce as the economy reopens. Employees will continue to receive 80% of their pay for hours not worked, but employers will have to contribute 10% towards the cost of unworked hours in July and 20% in August and September. The eligibility for the scheme has also been amended. From 1 May 2021, newly eligible employees,…

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New ‘significantly reduced profits’ test for third SEISS grant

25 November 2020: The eligibility criteria for the third SEISS grant have been further tightened. ICAEW’s Tax Faculty warns that the rules have changed, and claimants need to consider them carefully before claiming from 30 November.The guidance for the third Self-employment Income Support Scheme (SEISS) grant has been published, less than one week before the portal opens for claims from 30 November 2020.Earlier government policy announcements indicated that to qualify for the third grant, the business needs to not only be adversely affected due to coronavirus but also to:be currently trading…

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Read more about the article HMRC clarifies treatment of virtual Christmas parties
New Year and Christmas decor. Champagne flutes, little presents and green branches stand on a table before the dark wall covered with lights

HMRC clarifies treatment of virtual Christmas parties

20 November 2020: HMRC confirms that annual party exemption applies to virtual festivities, including gifts consumed at the party. In the Insights story explaining how the staff party exemption might apply this festive season, the Tax Faculty highlighted factors to consider when planning virtual parties. ICAEW is pleased to report the taxman is not a grinch at all and is ready to spread some virtual cheer. HMRC will soon update its guidance, but has confirmed that virtual parties for employees are exempt from tax where the cost does not…

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