Step four – no earlier than 21 June 2021
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- The ambition is that all legal limits on social contact will be removed - It is hoped that nightclubs can be reopened, and restrictions on large events and performances will be removed - At this point, the Government will assess if all limits can be removed on weddings and other life events
CIPP comment
Does Boris Johnson’s announcement that certain lockdown rules will remain in place for a number of months mean that the rumours circulating about a possible extension to the Coronavirus Job Retention Scheme (CJRS) are true? The Prime Minister confirmed that Chancellor of the Exchequer, Rishi Sunak will confirm how the Government plans to continue to support businesses in his Budget on 3 March 2021. If you have any feedback or comments on this, please don’t hesitate to contact the Policy team, at Policy@cipp.org.uk.
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Extension to income tax exemption on employer-reimbursed coronavirus antigen tests 9 March 2021
It has been confirmed that the income tax exemption for employer-reimbursed coronavirus antigen tests will be in place for tax year 2020-21, but also for tax year 2021-22, and HMRC has published an associated policy paper.
What this means is that, where an employer pays an employee to reimburse them for the cost of a relevant coronavirus antigen test, there will be no Income Tax liability for either the employee or the employer.
The Income Tax exemption will apply retrospectively to any advance payments or reimbursements made to an employee for the cost of a relevant coronavirus antigen test made for the tax year 2020-21. There is a separate measure to remove prospectively the tax charge for employer-reimbursed coronavirus antigen tests in the 2021-22 tax year. This measure only applies to relevant coronavirus antigen tests and isn’t extended to coronavirus antibody tests. The reason behind this is that the antibody tests only confirm whether an individual has previously contracted coronavirus, but the antigen test actually advises when an individual is currently affected by the coronavirus, and so confirms that they need to self-isolate to prevent its further spread.
National Insurance contributions (NICs) regulations have also been laid to ensure that there is no equivalent NICs charge on the payment, and there is a separate NICs tax impact and information note available.
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Self-Employment Income Support Scheme update 19 March 2021
Rishi Sunak announced within the Spring Budget 2021 that there would be both a fourth and a fifth grant made available under the Self-Employment Income Support Scheme (SEISS). HMRC has provided some additional information in relation to the fourth grant.
Eligibility
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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