HMRC has revealed that more than one million taxpayers filed their late tax returns in February – taking advantage of the extra time to complete their self assessment without facing a penalty.

About 12.2 million taxpayers were expected to file a return for the 2020/21 tax year and more than 11.3 million submitted their returns by 28 February.

The deadline for submitting tax returns was 31 January but, this year, HMRC gave customers an extra month to complete it. If customers filed their returns in February, they would avoid a late filing penalty.

HMRC has given customers until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty. Interest has been applied to all outstanding balances since 1 February.

Lucy Frazer, Financial Secretary to the Treasury, said:

‘[The] stats show how vital the extra month was in supporting the cash flows of more than a million self-employed people and businesses across the UK, helping to ensure their survival as we recover from the pandemic.’

Internet link: HMRC press release

The government must overhaul motoring taxes as it phases out new diesel and petrol vehicles, according to MPs.

MPs on the Transport Committee say the government must come up with new policy options by the end of the year. A ban on the sale of new diesel and petrol vehicles will be introduced by 2030, which means £35 billion will be lost in tax revenue.

In a report entitled Road Pricing, the Committee favoured a road charging system based on technology which measures road use.

Any scheme would include the drivers of electric vehicles, who would be required to pay for road usage. It would also cover vans and HGV vehicles, as well as overseas vehicle drivers.

Huw Merriman MP, Chair of the Transport Committee, said:

‘We need to talk about road pricing. Innovative technology could deliver a national road-pricing scheme which prices up a journey based on the amount of road, and type of vehicle, used. Just like our current motoring taxes but, by using price as a lever, we can offer better prices at less congested times and have technology compare these directly to public transport alternatives.

‘By offering choice, we can deliver for the driver and for the environment. Road pricing should not cost motorists more, overall, or undermine progress on active travel. Work should begin without delay. The situation is urgent. New taxes, which rely on new technology, take years to introduce.

‘A national scheme would avoid a confusing and potentially unfair and contradictory patchwork of local schemes but would be impossible to deliver if this patchwork becomes too vast. The countdown to net zero has begun. Net zero emissions should not mean zero tax revenue.’

Internet link: Parliament website

A partnership agreement to establish two green freeports in Scotland has been reached between the Scottish and UK governments.

The locations for the freeports have not yet been decided and there will be an application process with a view to setting up the freeports in 2023. Applicants in Scotland will be required to contribute towards a just transition to net-zero emissions by 2045, delivering net-zero benefits and creating new green jobs.

The UK government is expected to provide up to £52 million in seed funding to help establish green freeports in Scotland, which is in line with funding offered to the eight freeports already designated in England.

Freeports are specified geographical areas that allow certain benefits to businesses operating within them. These include a range of tax and other incentives, including a suspension from customs duties for imported goods and less burdensome customs procedures.

Scottish government Secretary for Finance and the Economy, Kate Forbes, said:

‘The Scottish government will have an equal say on all bids and will expect bidders to adhere to fair work practices, including payment of the Real Living Wage.

‘We can only seize Scotland’s economic potential if we create secure, sustainable and satisfying jobs that also help build a fairer, more prosperous economy for everyone. That is my absolute priority and establishing green freeports will be integral to achieving this.’

Internet link: GOV.UK

Businesses are being encouraged to apply for remaining coronavirus (COVID-19) grant funding from local authorities.

Hospitality, leisure and accommodation businesses can still apply for one-off cash grants of up to £6,000 through the Omicron Hospitality and Leisure Grant scheme.

The funding is made up of £556 million available through the Omicron Hospitality and Leisure Grant (OHLG) scheme and a further £294 million through the Additional Restrictions Grant (ARG) scheme.

The OHLG scheme provides businesses in the hospitality, leisure and accommodation sectors with one-off grants of up to £6,000 per premise.

To provide further support to other businesses, the ARG scheme provides councils with funding they can allocate at their discretion to businesses most in need, such as personal care businesses and supply firms.

Paul Scully, the Minister for Small Business, said:

‘We’re working to get our economy running on all cylinders again so we can focus on making the UK the best place in the world to work and do business, creating jobs along the way.

‘Eligible businesses should apply as soon as possible for the grants available to help them put the pandemic behind them and get on a sounder footing.’

Internet link: GOV.UK

The?Statutory Sick Pay Rebate Scheme?(SSPRS) will close on 17‌‌‌ ‌March‌‌‌ ‌2022.

The SSPRS was reintroduced by the government on 21 December 2021 for employers with fewer than 250 employees.

The maximum claim per employee is two weeks at the statutory sick pay (SSP) rate of £96.35 per week (£192.70 in total), which is the rate for 2021/22 (£99.35 2022/23). The employer’s claim is also capped at the number of employees in its PAYE scheme on 30 November 2021.

In a statement, the government said:

‘You have until 24‌‌‌ ‌March‌‌‌ ‌2022 to submit any new claims for absence periods up to 17‌‌‌ ‌March‌‌‌ ‌2022, or to amend claims you have already submitted.

‘You will no longer be able to claim back SSP for your employees’ coronavirus-related absences or self-isolation that occur after‌‌‌ ‌17‌‌‌ ‌March‌‌‌ ‌2022. 

‘From 25 March we will return to the normal SSP rules, which means you can revert to paying SSP from the fourth qualifying day your employee is off work regardless of the reason for their sickness absence.’

Internet link: GOV.UK