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Updates – CJRS, Self Employed Income Support and CGT on Property Disposals

The UK Government is continuing to provide daily updates and publications on their measures to deal with the disruptions caused by COVID-19.  The most recent updates have mainly been changes and clarifications of previously announced measures.  There have been updates on the Job Retention Scheme (CJRS – Furloughing), Self-Employment Income Support Scheme and the Reporting of Capital Gains Tax (CGT) on Disposals of UK Residential Property by UK Residents.

Useful links to UK Government guidance and our previous updates can be found at the end of this article.

Coronavirus Job Retention Scheme (CJRS – Furloughing)

The UK Government has announced a change to the eligibility criteria for the CJRS.  The date employees must have been employed from has been changed from 28 February 2020 to 19 March 2020. 

For employees to qualify for the CJRS they must be on the employer’s PAYE payroll and an RTI submission made to H M Revenue and customers by 19 March 2020.  As an example; for an employer running a monthly payroll and who started employing an individual from 1 March 2020, if the employer submitted their monthly RTI submission for March ON OR BEFORE 19 March the employee WILL qualify for furloughing.  If the employer submitted their monthly RTI submission for March AFTER 19 March the employee will NOT qualify for furloughing.

UK Government guidance on the Coronavirus Job Retention Scheme (CJRS) can be found here.

Self-Employment Income Support Scheme

Following the announcement of the Self-employment Income Support Scheme the UK Government has provided further guidance on how the grant will be calculated.  The UK Government guidance on how the grant will be calculated can be found here.  If you have any questions about this scheme, we recommend you contact us.  The UK Government plan is that H M Revenue and Customs will start to contact those self-employed individuals they believe are eligible for the scheme from mid-May and will start making payments to individuals from early June.  Please be vigilant against fraudsters imitating H M Revenue and Customs and should you have any concerns please contact us.

Full UK Government guidance on the Self-employment Income Support Scheme can be found here.

Reporting of Capital Gains Tax (CGT) on Disposals of UK Residential Property by UK Residents

Separate from COVID-19, from 6 April 2020 UK residents who make a disposal of UK residential property that is chargeable to capital gains tax (CGT) are required to report and pay any CGT due to H M Revenue and Customs within 30 days of completing the transaction.  H M Revenue and Customs has announced it is allowing a period of time to adjust and will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020.

For UK residents, this means transactions completed between 6 April and 30 June 2020 and reported up to 31 July 2020 will not receive a late filing penalty if they are reported beyond the 30 days deadline.  Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 days.  Interest will still accrue if the tax remains unpaid after 30 days.

Links

A UK Government business support website can be found here.  It contains guidance on all Coronavirus financial measures and business advice.

A UK Government general COVID-19 support website can be found here.  It contains guidance on all matters pertaining to the Coronavirus.

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