What are the implications of Covid on your tax return this year?

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44(0)330 024 3200 and discover how we can help you.

If you took advantage of the VAT deferral scheme (March – June 2020) or deferred your July 2020 income tax instalment, this should have either been repaid by their respective deadlines or you must already have an agreement in place with HMRC. There are interest and penalties to pay on late payments so if you are struggling to meet your commitments because of the impact of Covid-19, contact HMRCs Payment Support Service on 0300 200 3835 as soon as possible. They can organise a payment plan and will charge a small amount of interest.

Offset your Covid19 losses

The self-employed or partnerships that have experienced losses due to Covid-19 during 2020/21 or 2021/22 can offset these against profits from the previous 3 years and claim a tax rebate. If you have made a loss in either of these years, speak to us in good time so that we review your accounts and make a claim for you.

Coronavirus Job Retention Scheme

This scheme opened in April 2020 and came to a close in September 2021. During this time it supported more than 11 million jobs for more than a million employers. HMRC is now focussed on checking those claims to identify any fraud. If you think you may have incorrectly claimed, speak to our payroll team who can double check this for you and advise you on what to do next. Penalties and charges are often far less if you approach HMRC with a genuine mistake.

If you are unsure about anything contained in this article or would like to discuss your situation with one of our friendly tax experts, please get in touch on hi@hhllp.co.uk or +44(0)330 024 3200 and one of our friendly experts will be happy to help.