HMRC has confirmed that the final date for submitting any claims under the Coronavirus Job Retention Scheme (CJRS) will be 30 November 2020. It has stated that, after this point, there will be no option to make new claims, or to add to any previous claims. The scheme closes at the end of this month, on 31 October 2020, and for any employers wishing to use it, the Job Support Scheme (JSS) becomes active from 1 November 2020, but aims to ensure that employees are in ‘viable employment’, and are working at least a third of their usual hours. The CJRS has been in place since March 2020, at which point the government funded 80% of an employee’s usual wages, plus the associated employer National Insurance (NI) contributions and minimum compulsory pension contributions. The level of funding is gradually being withdrawn, and for claims relating to October, the Government will pay 60% of employee wages, ahead of the scheme’s closure.
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Penalties for erroneous CJRS claims confirmed 13 October 2020
As widely publicised, HMRC is encouraging anyone who has made claims under the Coronavirus Job Retention Scheme (CJRS) to check their previous submissions to ensure that they do not receive any penalties for claiming too much under the scheme, or for claiming in error.
If businesses realise that they have claimed too much under the scheme, and it has not already been repaid, then HMRC must be notified, and any overpaid amounts repaid by whichever date is applicable from the following:
• 90 days from receipt of the money under the CJRS that the claimant was not entitled to • 90 days from the point at which circumstances changed which meant that the claimant was no longer entitled to keep the CJRS grant • 20 October 2020, if, on or before 22 July, the claimant received CJRS funds that they were not entitled to, or if their circumstances changed
Failure to adhere to these deadlines may mean that the claimant has to pay interest and also a penalty, in addition to repaying the amount of the CJRS grant that they were not entitled to.
There is guidance, published by HMRC, which discusses the interest rates that are applicable on late or early payments across all tax regimes, which would also apply to incorrect claims made under the CJRS.
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Upcoming deadline for reporting CJRS overclaims 20 October 2020
Any businesses that have claimed too much under the Coronavirus Job Retention Scheme (CJRS), or who have claimed in error must report this to HMRC within a certain timeframe.
In the scenario where an overpayment has been made, and it has not yet been repaid, companies need to notify HMRC within the ‘notification period’. This ends on whichever of the following dates is later:
• 90 days after the relevant grant was received (if this was more than the correct amount) • 90 days after the date that circumstances changed, meaning they were no longer entitled to the CJRS grant • 20 October 2020 If there are any subsequent claims to be made under the scheme, then the adjustment can be made within that additional claim. If, however, no further claims are to be made, then a payment reference number must be obtained prior to making a payment to HMRC. Following on from the date that the payment reference number is provided, there is a 30-day period in which to pay HMRC back.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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