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20/01/2021 Holderness Gazette Article

Self-Assessment Tax Return Deadline

31st January 2021 is fast approaching. Have you submitted your 2020 Tax Return? HMRC have not announced an extension to the deadline due to COVID so don’t leave it until the last minute.

I would like to thank the wonderful people of the NHS. The roll out of the vaccine seems to be going well and we can only hope that this, in due course, allows us a little bit of freedom and a big step towards a return to normality. Until then, we all still have to do our bit and stick to the lockdown rules as best we can. I know it is difficult for our young people (and some of the older ones) to stay in and limit their contact with others. We are social people and need the contact of others for our mental wellbeing but in having that contact we risk catching or passing on the virus. Such a dilemma! However, we must continue to do all we can to minimise the spread and speed up our road to normality.

As always, we are getting through this together so and it is always heart-warming to hear of all the good so many people do to help others. So many shop for others, man food banks, run support groups over the internet or just be there on the end of a phone. Keep doing it. You make such a difference.

Our local businesses also need your support as many are having difficulty seeing when this will end and if they will get through it. Support them wherever you can. There is this belief that its cheaper on the internet, but this is not always the case and maybe it is worthwhile paying a little bit extra to support your local economy so that these businesses are still there when this all ends. We need these businesses, and they need us.

Choose local.

Local Restrictions Support Grant (Closed Businesses)

East Riding of Yorkshire Council (ERYC) made the following announcement 19th January 2021.

“On 4 January 2021 it was announced that we enter national lockdown by law from 6 January 2021. The Government provided guidance on 13 January 2021 on the eligibility criteria for the scheme, and we are now in the process of determining eligible businesses, we will make payments automatically, and we will not require a new application form. We are expecting that payments will commence Thursday 21 January 2021”.

Who can claim this funding?

Any business who was mandated to close by government during the National and the Local Tier 3 restrictions and paid business rates.

Businesses who completed a local authority application form during the November national lockdown and qualified for a grant payment, WILL NOT NEED TO MAKE A NEW APPLICATION.  ERYC have announced they we will automatically award further payments. 

The Council will identify eligible non-essential retail, leisure, personal care, sports facilities, and hospitality businesses from the last application process and will arrange for a grant payment to be paid into their bank account automatically.

Where a business has had a change and are no longer eligible for the grant, they must report this to . It is the responsibility of the business to report changes which may affect their grant eligibility. 

If you have not yet applied for the grant, applications for grants to be paid under the National Lockdown from 5 January 2021, will close 31 March 2021, please see below to apply if you have not already done so.

Self Employed Income Support Scheme Grant Extension

The scheme has been extended. If you were not eligible for the first and second grant based on the information in your Self-Assessment tax returns, you will not be eligible for the third.

The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of a grant for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.

HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.

To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which you reasonably believe will have a significant reduction in your profits.

The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.

You must make your claim on or before 29 January 2021.

The grant does not need to be repaid if you’re eligible but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self-Assessment tax return.

You must keep evidence to support your claim.

You must keep a copy of all records in line with normal self-employment record keeping requirements, including the:

  • amount claimed.
  • grant claim reference.

If you’re currently trading but have reduced demand

You must keep any evidence that your business has had reduced activity, capacity or demand due to coronavirus at the time you made your claim, such as:

  • business accounts showing reduction in activity compared to previous years.
  • records of reduced or cancelled contracts or appointments.
  • fewer invoices.
  • a record of dates where you had reduced demand or capacity due to government restrictions.

If your business is temporarily unable to trade

You must keep evidence if your business has been unable to trade due to coronavirus, such as:

  • a record of dates where you had to close due to government restrictions.
  • NHS Test and Trace communications – if you’ve been instructed to self-isolate in-line with NHS guidelines and are unable to work from home (if you’ve been abroad and have to self-isolate, this does not count)
  • a letter or email from the NHS asking you to shield.
  • test results if you’ve been diagnosed with coronavirus.
  • letters or emails from your child’s school

Let’s help each other to get through this.

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