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COVID-19 Update 6th July 2021

Update on Self-isolation Rules

The new Health Secretary made a statement to parliament today outlining new self-isolation rules that will come into effect on 16th August.

The change will be that anyone who’s a close contact of a positive case will no longer have to self-isolate, if they’ve been fully vaccinated. However, if someone gets their second dose just before, or after, the 16th of August, they’ll need to wait until two weeks after they get the second jab so that the vaccine has time to build the maximum possible protection.

https://www.gov.uk/government/speeches/update-to-parliament-on-self-isolation-rules

Guidance On Fifth SEISS Grant

HMRC has produced new guidance for self-employed people wanting to claim the fifth SEISS payment. To be eligible you must meet all three of the following sets of criteria

    • Stage 1: Your trading status and when you must have traded

You must be a self-employed individual or a member of a partnership. You must also have traded in both tax years:

2019 to 2020

2020 to 2021

You cannot claim the grant if you trade through a limited company or a trust.

    • Stage 2: Tax returns and trading profits

You must have:

      • submitted your 2019 to 2020 tax return on or before 2 March 2021
      • trading profits of no more than £50,000
      • trading profits at least equal to your non-trading income

Non-trading income is any money that you make outside of your business. For example, if you also have a part-time job or pension. If you’re not eligible based on the trading profits in your 2019 to 2020 return, HMRC look back at previous years.

HMRC will contact you in mid-July if you’re eligible for the grant based on your tax returns.

    • Stage 3: Deciding if you can claim

When you make your claim you must tell HMRC that you:

      • intend to keep trading in 2021 to 2022
      • reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

There is also further guidance on how to calculate your turnover

https://www.gov.uk/guidance/work-out-your-turnover-so-you-can-claim-the-fifth-seiss-grant#contents

How trading conditions could impact your eligibility

https://www.gov.uk/guidance/how-your-trading-conditions-affect-your-eligibility-for-the-self-employment-income-support-scheme

How HMRC calculates your trading profit

https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme

And how your circumstances could impact you eligibility

https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme

 

Extension to Income Tax and NI Contributions For Tests

HRMC have published updated guidance that covers the extension of the exemptions and disregards to any coronavirus antigen test provided by an employer, for the tax year 2020 to 2021 and 2021 to 2022. This also applies to any reimbursement to an employee for a coronavirus antigen test for the tax years 2020 to 2021 and 2021 to 2022.

https://www.gov.uk/government/publications/income-tax-and-national-insurance-contributions-exemption-for-employer-provided-coronavirus-antigen-tests/income-tax-and-national-insurance-contributions-exemption-for-employer-provided-coronavirus-antigen-tests

agto@agto.co.uk

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