HMRC has published legislation and a tax information and impact note to ensure that particular grants to help businesses, employers and individual partners of partnerships affected by the coronavirus crises are taxable income. This includes payments made under the coronavirus job retentions scheme (CJRS), the self-employment income support scheme (SEISS) and other business supporting schemes.
The provisions also give HMRC powers to recover payments to which recipients were not entitled under either SEISS or the CJRS schemes or when an employer has failed to use a grant to pay employees, makes pension contributions, or pay PAYE or National Insurance contributions. HMRC will be able to do this by raising income tax assessments or requiring taxpayers to submit a self-assessment tax return.
The department will be able to charge a penalty in cases of deliberate non-compliance.
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