Government measures in key jurisdictions 5th edition - Flipbook - Page 160
UnitedKingdom
Litigation
•
In England and Wales, with the help of some technological innovation such as the use of video
conferencing tools, the civil courts have been operating largely ‘business as usual’.
Are the courts
operating?
•
On 19 March 2020, the Business and Property Courts of England and Wales issued a
protocol regarding remote hearings, providing that remote hearings should take place
wherever possible. Where a remote hearing is not possible, then the Court has only two
solutions: (1) proceed with the matter in court; or (2) adjourn because a remote hearing
is not possible. The protocol emphasises the need for the court and parties to be
proactive in relation to forthcoming hearings. Subsequent guidance from the senior
judiciary and from case-law has been consistent that remote hearings are to be the
norm for the foreseeable future wherever possible even in more complex crossjurisdictional cases.
•
There has recently been a case where remote access to a hearing was provided too
widely by one of the law firms dealing with the case. They received a censure from the
court and have self-reported themselves to the legal profession’s regulator. This
illustrates the care with which remote access to hearings should be handled.
•
Similar methods are being employed to deal with arbitration hearings. To find out more
information, see here.
Tax
•
The cash grants being offered under the UK Government’s Coronavirus Job
Retention Scheme mentioned is closely linked to HMRC’s existed pay-as-you-earn
(PAYE) tax withholding system. HMRC is now starting to investigate Covid-19 grant
claims in depth, using the investigatory powers given to it in Finance Act 2020.
Taxpayers can correct any mistake that they have made without penalty or other
sanction, provided they notify HMRC by 20 October 2020, or within 90 days of
receiving the grant, whichever is latest.
•
Payments of VAT for the period from 20 March 2020 until 30 June 2020 may be
deferred until April 2021, regardless of the type or size of business, although the VAT
returns must still be made. However, VAT refunds and reclaims will be paid by HMRC as
normal to aid businesses’ cashflow. HMRC will also consider extending
payment deadlines for customs duty and import VAT on a case-by-case basis for
importers facing severe financial difficulties as a direct result of Covid-19.
•
Businesses that did defer paying VAT can now opt to use the VAT Deferral New Payment
Scheme to pay that deferred VAT in up to eleven equal payments from March 2021,
rather than one larger payment due by 31 March 2021.
•
Income tax self-assessment payments for the self-employed, including individual
partners in partnerships, that are otherwise due on 31 July 2020 were deferred until 31
January 2021.
•
All businesses in the hospitality and retail sectors irrespective of their rateable
value are exempted from paying business rates to 31 March 2021. The government has
announced it will continue to provide eligible retail hospitality and leisure properties in
England with 100% business rates relief from 1 April 2021 to 30 June 2021. This will be
followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022.
•
A £25,000 grant will also be available to businesses with smaller retail, hospitality and
leisure premises that have a rateable value between £15,000 and £51,000.
•
There have been various support packages for self-employed individuals who make
profits of up to £50,000 a year. Two further payments will be made under this scheme
with the payment in May based on 80% of average profits and a further payment in July.
The newly self-employed who filed a 2019-20 tax return before today can claim these
fourth and fifth grants.
Has any new
legislation been
introduced in light
of Covid-19?
160
Government measures in key jurisdictions
