Extension to the Coronavirus Job Retention Scheme
You may have already read or heard that the UK Government has reviewed the terms of the scheme, and 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.
For our clients who Rethink Accountancy process your wages, we will oversee this process for you, the requirements are as follows:
If you haven’t submitted your claim for November but still need to, check if you have a reasonable excuse by searching 'claim for wages' – if your reason means you can claim late, please do so as soon as you’re able to.
Check you have not made any errors on your November claims, by looking at the eligibility criteria and calculating how much you can claim – search 'Job Retention Scheme' on GOV.UK.
Submit any claims for December no later than 14 January.
Keep any records that support the amount of CJRS grants you claim, in case HMRC needs to check them.
Please note that reasonable excuses do not apply to late claims for periods before November, which should have been submitted already but, you can now submit claims for periods in December. These must be made by 14 January.
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 us 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 call HMRC. If you claimed too much but do not plan to submit further claims, you can let them know and make a repayment online through their 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 have made a mistake in a claim that means you received too little money, you’ll need to 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.
Why have monthly deadlines been introduced?
Introducing a 14-day deadline ensures that they can more regularly and accurately see and react to the impact of coronavirus on your business and as individuals.
Can you use CJRS grants to pay for holiday leave?
If you are furloughed because of the effect of coronavirus on your business, you can claim under the CJRS for periods of paid leave you take while on furlough, including for bank holidays such as Christmas Day or Boxing Day. If you are flexibly furloughed, you can count any time taken as a holiday as furloughed hours rather than working hours. This means you can claim 80% of your usual wages for these hours.
But you should not place yourself on furlough just because you are going to be on paid leave.
Can you include a Christmas bonus in my calculation for the grant?
You can claim for regular payments that you are contractually obliged to be paid, including compulsory commission, fees and overtime. However, you cannot claim for a discretionary commission, non-contractual bonuses (including tips) and non-cash payments.
We hope this information helps you and your business, and we’ll continue to keep you updated.