[chez]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

[Tom-01]

Thanks Chez, very helpful.

I personally didn’t take any grants, but interesting to know about the 3 monthly tax bill - I think I would actually prefer that.

Thanks
Tom

[chez]

My pleasure Tom. Hope it might help some.
My accountant is 70 and he doesn’t want the burden of making all of his clients go digital as some of his clients prefer pen and paper - so he was going to retire end of next year but now he is staying on for another year. Great bloke.
Cheers
Chez

[֍Winp®oClean֍]

That wasn't the case for me via self assessment.  It was listed separately if I recall correctly but then just treated as income and taxed normally too. My July 22 liability isn't any higher than it normally would be.

[Lee GLS]

I have just done mine. It get out in a separate box to your usual income but will get taxed exaggerated same. So if you aren’t the same amount as previous year but took the grants you will get a big tax bill The following year. If your earnings were genuinely down because of COVID and the grants made them up to normal then you won’t notice any difference.

Maybe some people didn’t need the grants after all 

[KS Cleaning]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

This is nothing  out of the ordinary, it’s how tax  liabilities are calculated.

[chez]

Yes I get that Lee. But they are treating the next tax bill in 2022 as if you have had the same amount of grant again, in addition to any grants you have had. Personally my actual tax bill is no higher than the norm but the July 2022 bill is higher because they will be charging me for grants I didn't take. Waste of tax payers time having to appeal the higher tax.

[Pete Thompson]

The payment on account being higher will not cost any more in total than you would have paid anyway.

When you submit your return next year the payments made on account are subtracted from your bill, so it just means you paid some tax 6 months earlier than you otherwise would.

This is a slight cash-flow annoyance, nothing more. I wouldn’t even bother to appeal.

[CleanClear]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

[NWH]

If you took a grant and were earning the same of course the Tax bill will be higher the people that benefited were the ones that had a unit etc when they got 10k for the privilege.

[CleanClear]

If you took a grant and were earning the same of course the Tax bill will be higher the people that benefited were the ones that had a unit etc when they got 10k for the privilege.

If you took a grant and where earning the same then your last worry would be the tax bill. You had to declare you where impacted financially. The two don't go together, its either / or .

[KS Cleaning]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

There is 9% NI tho😉

[CleanClear]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

There is 9% NI tho😉

There is 20% VAT rate too, if you wanna make a point then pull your pants up and make your point.

[KS Cleaning]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

There is 9% NI tho😉

There is 20% VAT rate too, if you wanna make a point then pull your pants up and make your point.

My point is, you’re the only person that’s mentioned a 29% tax rate. The opening poster said you will have to pay 29% back on the lot ……to simplify that for you, that will be 20% tax plus 9% NI = 29%  😉.
Before you try to make a Jeremy Hunt  of someone you’re maybe better getting your facts right first, otherwise it makes you look a bit silly😂

[zesty]

The payment on account being higher will not cost any more in total than you would have paid anyway.

When you submit your return next year the payments made on account are subtracted from your bill, so it just means you paid some tax 6 months earlier than you otherwise would.

This is a slight cash-flow annoyance, nothing more. I wouldn’t even bother to appeal.

Yeah there is no need to appeal, it will adjust next year, with the possibility of a small rebate depending on next years bill.

[JandS]

When you do your tax return in January Isn't there a box you tick or something that asks if your payment on account  due in July needs to be lower than your declared income for the return you are filling in.....if that makes sense.

[Mike Burd]

When you do your tax return in January Isn't there a box you tick or something that asks if your payment on account  due in July needs to be lower than your declared income for the return you are filling in.....if that makes sense.

Yes there is. Sounds like the OP's accountant should go now rather than waiting another year.

[AuRavelling79]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

There is 9% NI tho😉

There is 20% VAT rate too, if you wanna make a point then pull your pants up and make your point.

Is there something wrong with you? Post in a more measured way please.

NI + Basic rate Tax go hand in glove and presently equal 29%.

[CleanClear]

Hey all.
So just submitted my books ending April 21. Accountant has to explain a few things:
All grants received throughout the period from March 20 to April 21 will be listed separately on the return. So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January, plus your usual tax.  Then in July Inland revenue are also going to charge you 50% on account and are assuming you are having the same amount of grants for the following year, even tho they know that 99% of people are not receiving any more grants. I stopped at the 3rd grant so I’m glad I will have no grants to declare for next years books.  My accountant said it means my tax bill for July 2022 will be £3000 higher so as soon as my accounts are finished he is going to put an appeal in. This is the crazy thing according to my accountant, that most people are going to receive MUCH higher bills so everybody is going to have to appeal the tax bill. What a waste of time! Why they can’t just ask first if you have had the 4th  5th grants then give the bill, is beyond him.
Also he told me that within the next 3 years inland revenue are going to get everybody digital which means they will want you to submit figures every three months - not at the end of the tax year. They were going to introduce it in 2023 but have had such negative feed back from accountants etc that they announced they are going to give everyone an extra year to get ready. I’m really hoping that if they are making us submit every three months then there is no need to pay a 50% on account every July.
Hope it helps 😀

I can't think of a polite way to say this, but most of this is useless nonsense.

So if you had say £15,000 in grants then you will have to pay 29% on the whole lot (£4350} in January,

There is no 29% tax rate. Everything is going digital anyway wether your "70 year old accountant" you discovered likes it or not.
"Plus your usual tax"    Yeah , good one. Just hash tag  #joke in future then we can share it on Insta   

There is 9% NI tho😉

There is 20% VAT rate too, if you wanna make a point then pull your pants up and make your point.

Is there something wrong with you? Post in a more measured way please.

NI + Basic rate Tax go hand in glove and presently equal 29%.

Its a load of nonsense. Anyone who got a grant had to apply themselves and the Gov clearly point out it is taxable income. For someone who was impacted badly the grant maybe the lions share of their income. and their end of years figure lower. Everyones circumstances are different.