Apologies for not previously responding directly to your earlier post.
I totally agree with you regarding the unfairness of many other aspects of the eligibility criteria, including those highlighted by you.
Unfortunately I too am aware of a client who has regrettably taken his own life during these difficult times and I fear that many other taxpayers, unable to cope, will feel the need to do the same.
I absolutely understand all that you and others have said. I just feel that it is unfair to impose a deadline without giving advance notice to all taxpayers likely to be affected, including those who are not represented by agents and might therefore not have been aware of the importance of filing their 19/20 Returns for the purposes of the next SEISS grants.
I have to say that I think most of you are a pretty tough and unsympathetic lot.
Of course the filing deadline was 31 January and of course taxpayers were given an extra 28 days to avoid the late-filing penalty.
However, these are unprecedented times. Lots of people are in desperate need and, for many, their financial difficulties are compounded by mental health issues. Why on earth should the filing deadline for their Tax Return have any relevance to the provision of financial assistance, particularly when this is not explicitly made clear to them in advance? The cut-off date for the 18/19 Tax Return for the purposes of claiming the initial SEISS grants was 23 April 2020, a date for which taxpayers were given advance notice. There will be some people who met that deadline (hopefully, in most cases, having filed their 18/19 Tax Returns by 31 January 2020), but have now failed to deal with their 19/20 Returns, after experiencing a year like no other. Why should the goalposts now be moved without warning? I do sincerely believe that it would have been fairer to give a similar explicit advance warning this year too.
Well, I am going to stick my neck out and state that, in my opinion too, this is completely unfair.
I accept that the filing deadline was 31 January. However, taxpayers were advised that they would not incur the standard £100 late-filing penalty if they submitted their 19/20 Tax Return by 28 February. No mention was made of the fact that filing after 2 March would make them ineligible for the next SEISS grants. These grants are supposed to help people who are in financial difficulty. Why not be upfront regarding the deadline rather than announcing it after it has already passed? I truly believe that this is unfair. And I state this as an accountant, not as one of those who will now miss out.
For the 2 May Bank Holidays my calculation is as follows for an employee who normally works 5 days pw, is on an annual salary of £24,000 and has agreed to accept 80% pay whilst on furlough:
Holiday pay for the 2 days is £24,000 x 2/(52 x 5) = £184.62
“Normal” furlough pay for those same 2 days is £24,000/12 x 80% x 2/21 = £152.38
“Top-up” for the 2 days = £32.24
My reasoning is that there are 21 weekdays / potential working days during May 2020.
I believe that the fact that the maximum CJRS grant refers to calendar days, i.e. 31 days for May, is not relevant to the holiday pay calculation. Otherwise, as you suggest, we would be comparing apples and pears. I think that my method enables us to compare apples and apples (or it may be pears and pears) - and that's assuming anyone gives a fig.
This really is very kind and of great help.
Like so many others I have been totally inundated with calls and emails from clients and I feel like my head is going to burst.
Thank you again.
I have just used an HMRC NRCGT calculator available online.
After entering the relevant dates, amounts and facts, including the fact that the property was occupied as private residence before 6 April 2015, but not after 5 April 2015, the results allow private residence relief for the final 18 months of ownership!
This accords with the advice given to me by Matrix.
I have tried to understand the legislation, but the manner in which it is written, with the inclusion of so many amendments and insertions, really does make it very difficult to follow.
Any further thoughts or guidance, please?
Many thanks again.
The couple left the property on 01/08/2008 and have not lived in it since then.
Are you saying that they will still get private residence relief for the last 18 months, because for a period of time the property was previously their main residence (even though that period was prior to 06/04/2015), but that no letting relief will be available in these circumstances?
Or are you stating that neither relief will be available?
My answers
Apologies for not previously responding directly to your earlier post.
I totally agree with you regarding the unfairness of many other aspects of the eligibility criteria, including those highlighted by you.
Unfortunately I too am aware of a client who has regrettably taken his own life during these difficult times and I fear that many other taxpayers, unable to cope, will feel the need to do the same.
I absolutely understand all that you and others have said. I just feel that it is unfair to impose a deadline without giving advance notice to all taxpayers likely to be affected, including those who are not represented by agents and might therefore not have been aware of the importance of filing their 19/20 Returns for the purposes of the next SEISS grants.
I have to say that I think most of you are a pretty tough and unsympathetic lot.
Of course the filing deadline was 31 January and of course taxpayers were given an extra 28 days to avoid the late-filing penalty.
However, these are unprecedented times. Lots of people are in desperate need and, for many, their financial difficulties are compounded by mental health issues. Why on earth should the filing deadline for their Tax Return have any relevance to the provision of financial assistance, particularly when this is not explicitly made clear to them in advance? The cut-off date for the 18/19 Tax Return for the purposes of claiming the initial SEISS grants was 23 April 2020, a date for which taxpayers were given advance notice. There will be some people who met that deadline (hopefully, in most cases, having filed their 18/19 Tax Returns by 31 January 2020), but have now failed to deal with their 19/20 Returns, after experiencing a year like no other. Why should the goalposts now be moved without warning? I do sincerely believe that it would have been fairer to give a similar explicit advance warning this year too.
But then again, maybe I care too much.
Well, I am going to stick my neck out and state that, in my opinion too, this is completely unfair.
I accept that the filing deadline was 31 January. However, taxpayers were advised that they would not incur the standard £100 late-filing penalty if they submitted their 19/20 Tax Return by 28 February. No mention was made of the fact that filing after 2 March would make them ineligible for the next SEISS grants. These grants are supposed to help people who are in financial difficulty. Why not be upfront regarding the deadline rather than announcing it after it has already passed? I truly believe that this is unfair. And I state this as an accountant, not as one of those who will now miss out.
For the 2 May Bank Holidays my calculation is as follows for an employee who normally works 5 days pw, is on an annual salary of £24,000 and has agreed to accept 80% pay whilst on furlough:
Holiday pay for the 2 days is £24,000 x 2/(52 x 5) = £184.62
“Normal” furlough pay for those same 2 days is £24,000/12 x 80% x 2/21 = £152.38
“Top-up” for the 2 days = £32.24
My reasoning is that there are 21 weekdays / potential working days during May 2020.
I believe that the fact that the maximum CJRS grant refers to calendar days, i.e. 31 days for May, is not relevant to the holiday pay calculation. Otherwise, as you suggest, we would be comparing apples and pears. I think that my method enables us to compare apples and apples (or it may be pears and pears) - and that's assuming anyone gives a fig.
Anyone else have any thoughts on this, please?
This really is very kind and of great help.
Like so many others I have been totally inundated with calls and emails from clients and I feel like my head is going to burst.
Thank you again.
I have just used an HMRC NRCGT calculator available online.
After entering the relevant dates, amounts and facts, including the fact that the property was occupied as private residence before 6 April 2015, but not after 5 April 2015, the results allow private residence relief for the final 18 months of ownership!
This accords with the advice given to me by Matrix.
I have tried to understand the legislation, but the manner in which it is written, with the inclusion of so many amendments and insertions, really does make it very difficult to follow.
Any further thoughts or guidance, please?
Many thanks again.
Many thanks for the additional clarification.
Kind regards
Jon
Thank you for your assistance.
The couple left the property on 01/08/2008 and have not lived in it since then.
Are you saying that they will still get private residence relief for the last 18 months, because for a period of time the property was previously their main residence (even though that period was prior to 06/04/2015), but that no letting relief will be available in these circumstances?
Or are you stating that neither relief will be available?
Thank you again for your advice and guidance.
Yes - on the rental income!