30th July 2020

The Government has published guidance for employers wishing to make amends to their Coronavirus Job Retention Scheme (CJRS) claims. A deadline of 20 October 2020 to make any changes was announced, otherwise penalties may be incurred where mistakes were made.

If you have made a mistake in your claim that means you received too much, this must be paid back to HMRC. This will prevent any potential penalties, as well as any potential tax liability in relation to overpayment of CJRS.

If you have overclaimed a grant and have not repaid it, you must notify HMRC by the latest of either:

  • 90 days after the date you received the grant you were not entitled to
  • 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed
  • or by the deadline of 20 October 2020

You can either inform HMRC as part of you next online tax claim (meaning your new claim will be reduced and you will need to keep a record of the adjustment for six years), or you can contact HMRC to pay the money back. You should only use the latter option if you are not submitting another claim.

Lee Muter, Employment Taxes Partner at UNW, said: “As a matter of course, employers need to audit their claims to ensure they are correct, otherwise they could be at risk facing significant penalties – and in some cases, being named and shamed.”

Find out more about the penalty charges here, including when you may have to pay it, how HMRC decides how much the penalty will be, when HMRC will not charge a penalty, and how to appeal against a penalty.

In the event you have not claimed enough:

If you have made an error in your claim resulting in you receiving too little money, you still need to ensure that your employees are being paid the correct amount. You can contact HMRC here to amend your claim – as you are increasing the amount of your claim, HMRC may need to conduct additional checks.

Before 31 July, you must:

  • make sure to include all eligible employees on claims that you still need to make for periods up to 30 June
  • make any updates you need to on claims you’ve already made

After 31 July, you will:

  • no longer be able add an employee to any existing claims for periods up to 30 June, that should have been included on a claim submitted before that date
  • still be able to make amendments for any other errors that resulted in you not claiming enough

If you have any questions or have any concerns about how this announcement might affect you, please contact Lee Muter, Employment Taxes Partner, on 0191 243 6000 or at leemuter@unw.co.uk

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