HMRC has appealed to employees to encourage them to report their concerns if they are in any way worried that an employer is abusing the CJRS.
In employee guidance, there is a link to the ‘report fraud to HMRC’ page, where individuals can report those concerns. The CJRS forms part of a collective national effort to protect people’s jobs, and employees can play a crucial role by reporting fraudulent claims to HMRC. Fraudulent claims put the provision of public services and protection of livelihoods at risk. The money has been generated by UK taxpayers and should not be abused by unscrupulous employers. Employees should also report their employers if they are claiming on their behalf and not paying them what they’re entitled to. Similarly, if employers are asking employees to work while they’re on furlough or attempting to make backdated claims that include periods in which the employee was working, this should also be reported. There is also a reminder in employer guidance that HMRC will check claims that are made through the scheme, and that payments may be withheld if the claim is based on dishonest or inaccurate information or found to be fraudulent. Employers will also be required to repay the amounts in full if fraud is detected at a later date.
Coronavirus scams
Texts and emails are being circulated which offer recipients false financial support or tax refunds, sometimes threatening them with arrest if they don’t pay tax which they supposedly owe immediately. Scammers are also targeting people through phone calls. HMRC has published a wealth of information to protect people from these scams, including how to recognise genuine HMRC contact, how to avoid and report scams and examples of phishing emails and bogus HMRC contact. Any emails purporting to be from HMRC that look suspicious should be forwarded on to phishing@hmrc.gov.uk, and any dubious text messages sent to 60599.
Individuals who are victims of scams should contact their bank as soon as possible, and report it to Action Fraud.
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TPR guidance on calculating pension contributions where there is a salary sacrifice arrangement for the CJRS 21 April 2020 The Pensions Regulator (TPR) has published detailed technical guidance, aimed primarily at larger employers, which will assist in understanding the interaction between the calculation of normal pension contributions and pension contributions that can be claimed under the Coronavirus Job Retention Scheme (CJRS). The guidance relates specifically to pension contributions where there is a salary sacrifice arrangement. The grant available under the CJRS does not alter an employer’s usual pension contribution payment obligations or processes, and when calculating the pension contribution due for a furloughed worker who has a salary sacrifice arrangement for pension contributions in place, contractual obligations and pension scheme rules will continue to apply as normal. However, as the rules relating to the CJRS stipulate that all of the grant claimed must be paid to a furloughed worker in the form of money, this could potentially mean that, where a salary sacrifice arrangement is in place for pensions, an employer will need to amend its payroll processes to calculate the pension contribution to be paid to the pension scheme under the pension scheme rules. Salary sacrifice arrangements are contractual agreements between staff members and their employers, where staff agree to forfeit a portion of their salary in return for a benefit, such as a pension contribution, made by the employer. Contracts of employment are amended to reflect any salary sacrifice arrangements. In salary sacrifice arrangements, pension scheme rules usually mean that the obligation is on the employer to pay the total employee and employer contributions, however they are calculated. In many cases, the scheme rules will define pensionable pay as the notional pre-sacrifice pay. The amount the staff member sacrifices is paid across to the
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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