News Roundup 17 August: SEISS applications open today, P11D penalties & non-existent NIC debts
Good morning. If you are self-employed, the most important news is that the second round of SEISS applications open today. If you are eligible, HMRC should have contacted you. Whether or not you applied for the first-round grant, you can now apply for 70% of three month’s trading profits, up to a maximum of £6,570.
For more information on how to make SEISS applications, visit this page on Gov.uk. You need to make your claim on or before 19 October 2020.
Talking of SEISS applications…
In a small number of cases, HMRC has overpaid the first SEISS grant. If this has happened to you, the good news is that you won’t have to repay the extra money. The less good news is that – if you apply for the second-round grant – the excess will be deducted from this payment.
Employers – have you received an unexpected letter from HMRC? One that says you’re at risk of being hit by a penalty for filing P11D or P11D(b) forms late?
If so, the problem may be with HMRC rather than you – it is currently working through an eight-week backlog. The delay concerns forms submitted online as PDF files and hard-copy forms sent via post. It’s currently not clear whether forms sent using payroll software are affected.
HMRC is having problems because so many staff have now been moved to work on the various coronavirus support schemes. Because their computer systems don’t know your P11D forms have arrived, they have been automatically sending out penalty warning letters.
Our advice for clients who have received a warning letter is to ignore it, but only after you’ve doubled checked your P11D forms were sent in on time. If you subsequently receive an actual penalty notice, you should appeal against it straightaway – we can advise you on how to do this if needed.
Non-existent NI debts
HMRC isn’t having a huge amount of luck with its computer systems at the moment. This has led them to contact some employers to wrongly accuse them of underpaying PAYE and NIC for the period April to June.
So why is this happening? It seems that HMRC’s systems are not picking up employers’ claims for Employment Allowance in the first quarter of 2020/21. They hope to solve this by 19 August.
If you receive debt management letters, you can confirm whether your Employment Allowance claim has been accepted by checking your business tax account. Again, you need to inform HMRC of this as soon as possible – talk to your THP account manager if you would like any further advice.
About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.