UPDATE: Making Claims using the Coronavirus Job Retention Scheme (CJRS) & Deferring Payments of PAYE Tax & Class 1 NIC
HMRC have confirmed that any salary that is being wholly or partially reimbursed through the CJRS claim system will NOT be eligible for a payment deferral….even if a deferral has been agreed!
This is the case for any payments for PAYE tax & Class 1 NIC due to be paid in respect of furlough payments made in month 12 of 19/20 and month 1 of 2020/21 onwards. Therefore, this will affect any payments due from today (22 May) onwards.
This will affect you if you have:
- Made arrangements with HMRC to defer your PAYE payment obligations arising on 22 May 2020 onwards following the impact of the COVID-19 virus, and;
- Made a claim for reimbursement of furlough pay/NIC/pension from HMRC under the CJRS for those employees that have been placed on furlough.
Therefore, if you have not requested a deferral to make payments of PAYE/NIC payments to HMRC, or if you have not made any claims to HMRC under the CJRS, this issue will not affect you.
Any failure of payment could be regarded by HMRC as a ‘payment default’. In the event of a penalty notice being issued, in relation to the late payment of PAYE/NIC, you will still be able to make an appeal against that penalty on the basis that you had a “reasonable excuse” for the failure.
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