Stopfords
Stopfords

UPDATE – Coronavirus Job Retention Scheme – Claim Errors

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As previously highlighted by HMRC if a business has made an CJRS claim error that resulted in receiving too much money via the scheme, they are required to pay the amount over-claimed back to HMRC.

On Friday 5 June HMRC issued an update confirming that going forward the CJRS application system has been updated to enable businesses to advise HMRC if they have made previous errors and over-claimed.

When a business makes a furlough claim in the future they will be asked if they need to reduce the amount to take account of a previous errors. The new claim amount will then be reduced to reflect this. The employer is required to keep a full record of any CJRS claims and adjustments for the next 6 years.

HMRC has also confirmed they are still working on a process that will allow businesses to advise them about any previous errors and pay back any amounts that they have over-claimed if an error in a CJRS claim has been made, and the business does not plan to submit further furlough grant claims. HMRC have advised that they will update their guidance when that process is available.

If you have made and error you need to ensure that you are able to support the overall level of payments received under the scheme, you should keep details of how the original claim was calculated, how the errors arose, details of the correct amounts that should have been applied for and, confirmation of how the previous over-claim was offset against later claims.

HMRC stated from the outset that they will be carrying compliance checks on furlough claims made, and require employers to keep all CJRS furlough records for 6 years. Errors found by HMRC will be deemed as compliance error and, as such, in addition to seeking repayment of the overclaim, interest and penalties will also be charged. Legislation is currently in the process of being approved to expand HMRC’s powers of inspection to include furlough payments.

If you have any questions please do not hesitate to contact our payroll department 01623 420269.

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