Announced by HMRC on 25th January 2021 :

Penalties will not be charged for late filing of 19-20 Self Assessment. Self assessment must be filed online by 28‌‌ ‌February.  Any filed after 28th February 2021 will have a penalty to pay.

The Self Assessment tax bill is still due by 31‌‌ ‌January. Interest will be charged from 1‌‌ ‌February on any amounts outstanding. HMRC accepts payments online, or through their bank, or by post before they file.

If you cannot afford to pay by 31‌‌ ‌January, an affordable plan could be set up for payment in monthly instalments. The 2019-20 tax return will need to have been filed before setting up a time to pay arrangement. To see if you qualify read more : Self Assessment customers to benefit from enhanced payment plans – GOV.UK (www.gov.uk)

Would you like help with your bookkeeping, VAT, CIS, payroll or self assessment? Please do not hesitate to contact me on 07771 333324 or email me jo@barnowl-bookkeeping.co.uk. I am registered bookkeeper specialising in manufacturing. Based in King’s Lynn enables me to cover Swaffham, Wisbech, Downham Market, Fakenham and the North Norfolk Coast.

If you were eligible for the last two grants you may be eligible for this third grant. If you may be eligible HMRC will have contacted you. The third grant covers trading in the period 1^st November 2020 to 29^th January 2021. It is based on 3 months profit averaged from the years 2016/2017 to 2018/2019, capped at £7,500. Read more about it here :

Claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

In my last blog I outlined that there were some uncertainties regarding a particular statement.

“You must also

• reasonably believe there will be a significant reduction in your trading profits due to reduced demand or your inability to trade.”

Read the HMRC webpage here :

Check if you can claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

This has now been clarified as follows:

Reduction in trading profits refers to your whole year. It means you will have to look back at profits from 31^st October to the year start and forecast profits from when you make your claim to the end of your financial year. If you use a financial year which is not in line with the HMRC year of 6^th April 2020 to 5^th April 2021 you may have to look at the impact over 2 financial years.   

Any previous grants are not to be included in the figures for trading profit.

HMRC have not given a hard and fast test for “significant reduction in profits”. They have given a lot more examples of trading situations which do and do not qualify. Read these carefully and make the “honest assessment” that HMRC are asking you for.

I do hope this helps.

There may be a fourth grant released to cover the period from February to April. The legislation for this grant has not been passed so there could be further changes to the wording.

With thanks to the Institute of Chartered Accountants in England and Wales (ICAEW)

COVID-19: Self-Employment Income Support Scheme version 3 | ICAEW

Please contact me if you would like some hep with your business. I offer the following services: bookkeeping, payroll, CIS, VAT and Self-Assessment for the Self Employed. Based near King’s Lynn I am also within easy reach of Swaffham, Downham Market, Wisbech, Fakenham and the North Norfolk Coast. Pro Advisor for Xero and Quickbooks

 www.barnowl-bookkeeping.co.uk  Tel. 07771 333324

email jo@barnowl-bookkeeping.co.uk