HMRC guidance on reporting COVID-19 support grants and payments

HMRC has published a checklist of all the different COVID-19 support grants and payments that have been made, including those paid by devolved administrations and local authorities. Alongside the checklist it outlines guidance on tax treatment and how the self-employed and partnerships should report these payments on self assessment tax returns. ICAEW has published detailed guidance on Self-Employment Income Support Scheme and Coronavirus Job Retention Scheme grants in TAXguide 12/21, which is available to all ICAEW members.

Taxpayers urged to check eligibility for the marriage allowance

HMRC has reminded married couples and those in civil partnerships that they could reduce their income tax liability by up to £252 a year by sharing their personal allowances. Recent changes in circumstances may mean that they are now eligible to make a claim or their eligibility has changed. ICAEW’s Tax Faculty has also published TAXguide 14/21 on income tax loss carry back that highlights how a loss-relief claim might affect eligibility for the marriage allowance. The faculty also warns that as marriage allowance claims are automatically renewed every year, couples should remember to notify HMRC if their circumstances change (for example, if they divorce). Read more.

Employer bulletin gives end date for special coronavirus arrangements with the EU

HMRC has issued Employer Bulletin August 2021, covering a variety of topics including UK transition, coronavirus updates and PAYE (including student loan types and the correct payment of national minimum wage to apprentices). It confirms that the social security coordination arrangements with the EU, allowing HMRC to disregard changes to individuals’ work locations caused solely by COVID-19 related restrictions, will end no later than the end of December 2021. Read more.