COVID-19 Update – 10 June – Parents returning to work, stamp duty land tax refunds and employment-related security return delays.

Parents on statutory maternity and paternity leave who return to work in the coming months will be eligible for furlough scheme after 10 June cut-off date.

It was confirmed late on 9 June, that employees on statutory parental leave who return to work after a long period of absence can be furloughed under the Coronavirus Job Retention Scheme (CJRS) even if they return after 10 June, but only if they work for an employer who has previously furloughed employees.

To enable the introduction of part-time furloughing, and support those already furloughed back to work, CJRS claims from 1 July onwards will be restricted to employers currently using the scheme and previously furloughed employees. This means people not previously furloughed must be on the furlough scheme by 10 June to have completed the required 21 days of furlough to be eligible for part-time furlough.

More details of the change will be included in updated guidance, to be published on 12 June and we will continue to bring you updates.

In the interim, please see our summary of the current scheme and contribution levels.

Homeowners in England and Northern Ireland unable to sell their home within three years of purchasing a replacement property due to the coronavirus pandemic may still claim a stamp duty land tax (SDLT) refund.

Following a written ministerial statement by the Financial Secretary to the Treasury and in light of the coronavirus pandemic’s impact on the housing market, HMRC has updated its guidance on exceptional circumstances for claiming an SDLT refund outside of the normal time limits. This will allow homeowners to apply for a refund of the higher rate of SDLT even if the previous home was not sold within the three-year time limit, where that period came to an end on or after 1 January 2020.

In England and Northern Ireland, the purchase of a second home is subject to an additional amount of SDLT equating to 3% of the purchase price. Where the second home is a replacement home, but there is a delay in selling the original home, a refund of the additional SDLT can be claimed where the first home is sold within three years of the new purchase.

Employment-Related Security Returns – reasonable excuse

Coronavirus is a potentially reasonable excuse for late ERS returns. This will most likely be relevant to companies who have temporarily shut down over this period or are on reduced capacity and thus unable to deal with the admin burden at their end.
https://www.gov.uk/guidance/employment-related-securities-bulletin-35-june-2020

Deadlines for registration of new schemes and filing of returns: HMRC recognises that some employers and agents may struggle to meet ERS tax obligations due to coronavirus.

You should try to meet your obligations such as registering new schemes and filing returns as soon as you can. However, if you cannot and this is due to coronavirus, HMRC will consider coronavirus as a reasonable excuse for missing some tax obligations. You should explain how you were affected by coronavirus when you make your appeal.

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