CJRS guidance updates

13 July 2020

HMRC’s guidance on Claim for wages through the Coronavirus Job Retention Scheme has been amended to include details of HMRC’s development of the process to recover overclaimed grant amounts through the tax system. HMRC has advised that they plan to introduce legislation to recover overclaimed grants amounts via the tax system. If the amounts overclaimed are paid prior, this will either reduce or nil out the amount due. It is advisable to repay any overclaims prior to avoid any tax liability. Full details will be issued in due course.

Within the guidance, HMRC also confirmed that where a business has no alternative but to make employees redundant, furlough claims can be made during the period of the employee’s statutory notice where it is being served. This means that whilst the employee is serving their notice period, they can continue to be furloughed, however, what is paid to them during their notice period and what can be claimed may differ. Regardless of their contractual notice pay, the amount of 80% up to the maximum of £2,500 is the amount that can be reclaimed. It is important to note that only notice that is served is included in this, and not any payments made in lieu of notice. You cannot make a claim to contribute towards to the redundancy element of the employee’s pay.

A number of other changes have been made including the addition of a new page individuals you can claim for which is pulled out of an earlier page check which employees you can include. Unhelpfully it isn’t included within the CJRS collection page but is accessible as a link from its original page.

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