If furloughing employees that are military reservists, for the first time, add this number to the maximum number of a previous claim when calculating the maximum number of employees, you can claim for.
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Bosses are urging employees to commit ‘furlough fraud’ 23 June 2020
It has been widely reported that significant levels of ‘furlough fraud’ have been taking place over the course of the period in which the Coronavirus Job Retention Scheme (CJRS) has been available for businesses to claim grants through the CJRS for employees that they have placed on furlough. Research carried out by Crossland Employment Solicitors highlights the fact that 34% of employees have been instructed to continue working despite the fact that they have been placed on furlough. 29% were asked to complete administrative tasks while on furlough, and 20% had been told to work for a company linked to the one that had placed them on furlough. As the government is aware that ‘furlough fraud’ is prevalent, they are giving employers a 30-day period in which to admit that they have made incorrect claims, in draft legislation which will also give HMRC powers to charge penalties for deliberately submitting fraudulent claims. The rules surrounding the operation of the CJRS from March – June 2020 clearly state that employees must not carry out any work for the employer that has placed them on furlough – however, they may undertake training. They are also permitted to complete volunteering work for, or start work for another employer, if their contract allows.
The research found that the rules were being broken in both small and medium-sized enterprises, and also in larger companies.
An HMRC spokesperson said:
“The Coronavirus Job Retention Scheme is part of the collective national effort to protect jobs. This is taxpayer’s money and fraudulent claims limit our ability to support people and deprive public services of essential funding.
“We’d ask anyone concerned their employer might be abusing the scheme to please contact us. It could be that you’re not being paid what you’re entitled to, they might be asking you to work while you’re on furlough, or they may have claimed for times when you were working. “We have received 3,858 reports from the public. Reports can be submitted to us entirely anonymously and everything we receive is assessed and a decision made on the most appropriate course of action. We’re not trying to catch people out – if it turns out to be a genuine mistake then we’ll help put it right, and if it’s more serious then we’ll step in. “These reports are just one way that HMRC identifies fraud. Claims are checked and payments may be withheld or need to be repaid if the claim is based on dishonest or inaccurate information. We won’t hesitate to take criminal action against the most serious cases.”
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Coronavirus Job Retention Scheme Direction - take three 29 June 2020
A third Coronavirus Job Retention Scheme (CJRS) direction has been laid that amends earlier directions and takes forward the CJRS scheme until the close date of 21 October 2020.
The Treasury direction made under Sections 71 and 76 of the Coronavirus Act 2020 reflects the extension of the Scheme to 31 October, and the changes to the terms of the scheme from 1 July onwards, announced by the Chancellor on 12 May.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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