Box 20.1 SA100 dilemma

Realised Box not ticked for return (however all grants included and taxed).

Didn't find your answer?

Hi

Picked up on earlier thread concerning this.

I have realised I omitted ticking this box- though all grants included and taxed on Self Employment pages.

However I no longer act for this client and new accountant has yet to apply for professional clearance.

Intending to inform the ex client but who should remedy?

Thanks for any advice.

 

 

Replies (15)

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By Catherine Newman
07th Dec 2021 13:45

I hadn't ticked it ever. A client who actually checked her and her husband's returns told me about its existence about a month ago. I have done about 200 returns. Another unnecessary tick boxing exercise.

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Replying to Catherine Newman:
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By Lass
07th Dec 2021 14:05

Hi
Thanks for that.
I contacted HMRC and they advised to write in and confirm box 20.1 should have been ticked as opposed to submitting an amended return.
A list of clients affected would be acceptable.
Phew!

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Replying to Lass:
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By justsotax
07th Dec 2021 14:23

exactly what i have done, didn't see the benefit in amending, revenue are likely to lose letter or respond in about 3 years anyway....

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By claudialowe
07th Dec 2021 14:22

My software (BTC) won't let me finalise a return until that box has been ticked, if there are entries in either the SEISS or "other COVID grant" boxes.

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By Geoff56
07th Dec 2021 14:30

Interestingly, on HMRC's own SA100 software, there was no way of marking that box until about August. That box now appears just above the box that indicates the client has approved a copy of the SA100, as the penultimate step in the submission process. Ticking the box then changes the unique identifier.

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Replying to Geoff56:
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By John Stone
10th Dec 2021 21:22

I use the HMRC software too. The first time I was asked to confirm all Covid grants had been entered was for a return submitted on 29.7.21.

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By Lass
07th Dec 2021 14:55

Thanks all!
Sadly mine didn't automatically from the relevant entries on the self employed pages :(

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By Calculatorboy
07th Dec 2021 23:22

I believe taxcalc automatically ticks it when you enter the amount in se pages ..which is how it should be in paid for software .

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By Elgin
08th Dec 2021 09:32

This prompted me to check mine and I have one. I have just called the Agent Helpline and the lady indicated that no action was required if the figures were correct.

She was not familiar with box 20.1 though so I am not sure that I will get the same answer if I call again.......

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By More unearned luck
08th Dec 2021 13:36

"If any of your businesses received coronavirus
support payments (such as CJRS, SEISS) you must
put ‘X’ in the box to declare that they have been
included as taxable income when calculating profits
in the period of this return"

Why must a taxpayer make such a declaration? What is wrong with the statement of truth at box 22?

HMRC can only ask on the return for things 'reasonably required' to establish the tax position. An X in Box 20.1 isn't reasonably required. Returns don't include a similar box 'requiring' the taxpayer to assert that, for example, all bank interest has been declared.

My advice is to leave it unticked in all cases:
*If all CV grants are correctly declared: no harm done.
*If it transpires that such grants were underdeclared then a ticked box 20.1 gives HMRC an extra stick to beat the client with when it comes to penalties.

It's possible that a return with no X might be more susceptible to an enquiry into CV grants declarations, but I think it would be poor criterion for HMRC to use as a selection tool.

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By Catherine Newman
08th Dec 2021 17:20

They have sent amendments where I have included council grants and SEISS grants in the same box. They go on "information we hold" so don't even contact HMRC about it. You can "do no more".

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Replying to Catherine Newman:
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By More unearned luck
08th Dec 2021 19:15

Do you mean that HMRC have added SEISS in the correct box and not deleted it from the wrong box? Or that a figure has been added to the correct box with a corresponding reduction from the wrong box, ie there is no change in the SA?

If the SA is now wrong then you can 'do more' by objecting to the amendment.

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Replying to More unearned luck:
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By Catherine Newman
10th Dec 2021 18:34

I included a council grant in the SEISS box. HMRC removed the amount for the Council Grant from the SEISS box, reduced the profits and removed the class 2 NI, which arose. I rang up and they said I had to file an amended return with the council grant in "Other Income".

As I didn't know about 20.1 then, it has still gone unchecked. I had declared the grants but the council one in the wrong box so all grants had been recorded but HMRC took one out.

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Replying to Catherine Newman:
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By More unearned luck
11th Dec 2021 14:40

So, you were playing all the notes, but not necessarily in the right order.

It sounds to me that the bottom line (box TC1) was correct and HMRC's 'amendment' made it wrong. See the thread below, especially Richard Thomas's contributions on whether HMRC are acting within the law.

https://www.accountingweb.co.uk/any-answers/tma-s9zb4

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By Hugo Fair
10th Dec 2021 22:00

This month's "HMRC Employer Bulletin" - Note final sentence. I know this is all CT600 guidance but I can't see why the logic would be different for SATR:

Declaring coronavirus grants on tax returns.

* If you need to complete a Company Tax Return (CT600) and your business has claimed grants from the CJRS, EOTHO, or any payments made by local authorities and devolved administrations, you’ll need to report this as income when you calculate your taxable profits.
If you have already filed a return and have not declared your coronavirus support grants or payment as taxable income, you will need to submit an amended return.

* If you received a CJRS grant you will also need to declare the amount you received (box 471 in theCT600 tax return), the grant you were entitled to (box 472), and any
CJRS overpayment already assessed or voluntarily disclosed (box 473) during the accounting period covered by your CT600 return. You will need to complete box 474 if you received any EOTHO overpayments.
These boxes were added to the CT600 on 6 April 2021 so if you filed before 6 April 2021, you would have been unable to declare this.

* If you or your agent submitted a CT600 return without boxes 471 to 474 and 526, or left the boxes incomplete, and you have a CJRS or EOTHO overpayment to report you need to amend your return.
If all coronavirus support overpayments are already repaid or have already been assessed before the tax return is filed – and there’s no coronavirus support schemes overpayment due – you do not have to correct your return.

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