HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.

HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

• anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February

• anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures

Solicitors Regulation Authority (SRA) Accounts Rules Audits

Solicitors are responsible for protecting client money. Solicitors often hold significant cash for clients, for example, house deposits or funds to purchase a business. It is crucial that this money is protected from misuse to protect clients, and for confidence in the legal profession.

Reporting Accountants play an important role in reviewing how law firms do this through their reporting work under the Solicitors Regulation Authority (SRA) Accounts Rules. The SRA provides guidance on how reporting accountants should approach their work. It relies on reporting accountants using their professional judgement when planning, scoping and carrying out their work.

Xaviers is fully-qualified and accredited to provide SRA audits. Delivered by experienced auditor and ICAEW and ACCA member Mijos Xavier, Xaviers Accountants specialises in the delivery of SRA Audits for solicitors and legal professionals throughout Wigan, Preston, Greater Manchester and across the UK. SRA audits also allow an auditor to identify areas of inconsistency and areas where a business may wish to improve its processes.

Please contact us: Tel: 01772439023E: info@xaviersaccountants.co.uk

https://www.xaviersaccountants.co.uk/sraaudit

Changes to the CJRS from July

In July, the UK Government will pay 70% of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will reduce to 60% of employees’ usual wages up to a cap of £1,875.

Employer will need to pay the 10% difference in July, and 20% in August and September, so that employer continues to pay furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

You can still choose to top up your employees’ wages above the 80% level or cap for each month if you wish, at your own expense.

To help you plan ahead for future claim periods, the CJRS calculator is available to help you work out how much you can claim for employees up to the end of September. To find this and everything you need to know about the CJRS, search 'Job Retention Scheme' on GOV‌‌.UK.