14/05/2020 by Pete Bird
Coronavirus Job Retention Scheme (CJRS) (Update 12 May 2020)
On 12 May the Chancellor announced that the coronavirus job retention scheme (CJRS) would remain open to cover employees’ pay while they are furloughed for periods up until 31 October 2020.
Some flexibility will be introduced into the scheme from 1 August to allow furloughed employees to work part time, but the employer will have to meet some of the cost of their wages. There may also be changes to encourage more employees to undertake training while furloughed, which is currently permitted but not widely used.
If you make an error on a CJRS claim HMRC advises you not to amend the next claim for that employer to “make good”, as that would make both claims incorrect and may delay payment. If HMRC spot an error in a CJRS claim it will ask the employer or their agent to correct it.
The best approach is to double check all the calculations of pay, and the eligibility of the employees, before you start a CJRS claim. Also check you have a NI number for each employee. Where the claim is submitted on a spreadsheet (for 100 or more employees), HMRC is not checking each NI number, but it may do so at a later stage when screening for fraudulent claims.
You can now pause and save a claim on the CJRS portal and return to it later, which may help you reduce errors as the data can be doubled checked if you spot a problem.
Furloughed employees who claim working tax credits may be worried that they aren’t working the required number of hours to continue to qualify for tax credits. HMRC has said it will treat all tax credit claimants as working their normal hours while furloughed or on unpaid leave until the CJRS closes.
A REMINDER. Clients are now making their claims and as advised before, please may we have copies of the calculations that HMRC provide you with at the time you make the claim. This will enable us to confirm or otherwise these calculations, as HMRC are using the figures on the tax returns we submitted on your behalf.