PWA CORONAVIRUS JOB RETENTION SCHEME UPDATE
The UK Government has announced that the Coronavirus Job Retention Scheme (CJRS) will remain at the current level of 80% of usual wages for the hours not worked, and will be extended until the end of April 2021.
Reminder of monthly deadlines
The deadline to submit a claim for November furlough was the 14th December 2020.
If you did not submit your claim by this date, you can still do so but you must provide HMRC with a letter of “a reasonable excuse”.
What you need to do now
- Submit any claims for December no later than 14 January 2021
- Keep any records that support the amount of CJRS grants you claim, in case HMRC needs to check them.
You can now make December claims
To help you plan ahead to meet the monthly deadlines, here’s a list of the key dates you need to know:
- 14 January 2021 – final date to submit claims for Dec 2020 by 11:59pm
- 15 February 2021 – final date to submit claims for January 2021 by 11:59pm
- 15 March 2021 – final date to submit claims for February 2021 by 11:59pm
- 14 April 2021 – final date to submit claims for March 2021 by 11:59pm
- 14 May 2021 – final date to submit claims for April 2021 by 11:59pm.
What if I’ve claimed too much in error?
If you have claimed too much CJRS grant and have not already repaid it, you must notify HMRC and repay the money by the latest of whichever date applies below:
- 90 days from receiving the CJRS money you’re not entitled to
- 90 days from the point circumstances changed so that you were no longer entitled to keep the CJRS grant.
If you do not do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant.
You can repay as part of your next online claim without needing to contact HMRC.
If you claimed too much but do not plan to submit further claims, you must let HMRC know and make a repayment online through the HMRC card payment service or by bank transfer – go to ‘Pay Coronavirus Job Retention Scheme grants back’ on GOV.UK.
What if I haven’t claimed enough?
If you made a mistake in your claim that means you received too little money, you can amend it within 28 calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, in which case the deadline is the next weekday. The deadline to amend claims for November is Tuesday 29 December.
Can I use CJRS grants to pay for holiday leave?
If you have furloughed employees because of the effect of coronavirus on your business, you can claim under the CJRS for periods of paid leave that employees take while on furlough, including bank holidays such as Christmas Day or Boxing Day.
Can I include a Christmas bonus in my calculation for the grant?
You can claim for regular payments that you are contractually obliged to pay your employees, including compulsory commission, fees and overtime. However, you cannot claim for discretionary commission, non-contractual bonuses (including tips) and non-cash payments.
How do I calculate the grant amount for employees?
A CJRS calculator can work out most fixed or variable pay calculations – you can find this calculator on GOV.UK by searching ‘calculate how much you can claim’. However, the CJRS calculator cannot be used for some employees, including those who:
- were variably paid, and have been on more than one period of furlough where any part of any of the periods of furlough was in the 2019/20 tax year
- have variable pay, started employment before 6 April 2020 and were not on their employer’s payroll on or before 19 March 2020
- started employment with their employer during a calendar period in the 2019-20 tax year which corresponds with part or all of the period being claimed for.
If you cannot use the calculator, you will need to work out what you can claim manually using the calculation guidance.