Upcoming deadline for reporting CJRS overclaims
19 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.
Payments can be made online, or by telephone banking, CHAPS, BACS or by using a debit card or corporate credit card. Faster payments can also be made to HMRC’s account.
If the deadlines are not met, then claimants may have to pay a penalty. If, however, the overclaimed grant is repaid, this will prevent any potential tax liability in relation to the overpayment of the CJRS.
Guidance is available on the topic of paying CJRS grants back, on GOV.UK.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.