HMRC have issued new guidance in respect of the Coronavirus Job Retention Scheme (CJRS). You can find this by searching for ‘Coronavirus Job Retention Scheme guidance’ on GOV.UK. It includes guidance on what to do if you have overclaimed from the CJRS. Here’s a summary:
What to do if you have overclaimed from the CJRS
If this applies to you, then all you need to do is tell HMRC when you next claim so that you can pay it back. You will be asked when making your claim whether you need to adjust the amount to take account of a previous error. Your new claim amount will be reduced to reflect this. You do not need to take any other action but should keep a record of this adjustment for six years.
If you’ve made an error in a previous claim but do not plan to submit further claims, you need to contact HMRC to let them know. They will tell you how to repay the money.
Claiming for 100 or more employees
There is a new template available to claim for periods starting on or after 1 July if you are claiming for 100 or more employees. This is to help ensure your claim to be processed quickly and successfully.
You can find this template by searching ‘download a template if you’re claiming for 100 or more employees through the Coronavirus Job Retention Scheme’ on GOV.UK.
Paying your employer National Insurance Contributions (NICs) and pension contributions
A condition of the CJRS grant is that you pay the related PAYE tax, NICs and pension contributions due on wages. Until the 31st of July you can continue to claim these for the hours the employee is on furlough. From the 1st of August employers will no longer be able to claim for NICs and pension contributions.
If you think you may struggle to pay your PAYE tax and/or NICs from August contact HMRC as soon as possible, before they start action to recover the unpaid debt. They may be able to give you time to pay.
Protect yourself from scams
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Don’t give out private information or reply to text messages, and don’t download attachments in emails you weren’t expecting. Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to firstname.lastname@example.org and texts to 60599.
Help and support
If you need help with what to do if you have overclaimed from the CJRS or any other aspect of your payroll contact me now.