Extended Coronavirus Job Retention Scheme – guidance updates 19th November 2020

Coronavirus Job Retention Scheme, COVID-19 Coronavirus, For business, For the employee, For the employer, Fraud, Furlough 2 Minutes

HMRC applied further updates to the guidance for the extended CJRS on Thursday 19th November 2020:

Check if you can use the scheme

  • The sections ‘Who can claim’ and ‘Employer claim information that HMRC will make public’ have been updated. Amounts claimed will be provided to employees on their Personal Tax Account.
Check if you can claim
for your employees through the CJRS
  • Information about if your employee becomes sick while furloughed has been amended to remove outdated information.
Check which employees
you can put on furlough to use the CJRS

Work out what you can claim

  • There has been a minor amendment to clarify how to work out 80% of your employee’s average earnings between the date their employment started and the day before they are furloughed.
Steps to take
before calculating your claim using CJRS
  • The information has been updated to include more detail about what HMRC may deem to be a reasonable excuse for missing a claim deadline. The information has also been amended to make clear that if a claim deadline falls on the weekend or a bank holiday then claims should be submitted on the next working day.
Calculate how much
you can claim using CJRS
  • There have been amendments to examples 2.9 and 3.9 in ‘Examples of how to calculate your employees’ wages, National Insurance contributions and pension contributions’. Also, a new example has been added to ‘Full examples of how to calculate the amount you should claim for an employee who is flexibly furloughed’.
Find examples
to help you calculate your employees wages

Claim and report earnings

  • The information has been updated to include more detail about what HMRC may deem to be a reasonable excuse for missing a claim deadline. The information has also been amended to make clear that if a claim deadline falls on the weekend or a bank holiday then claims should be submitted on the next working day.
Claim for wages through CJRS

Opinion

Most of the changes are minor updates on detail and added clarification.

It is significant that as a step to prevent furlough fraud, for CJRS claims from 1st December 2020, the amount of grant claimed for an individual will be reported to them in their Personal Tax Account.

The application deadline for claims with 14 days of the end of the calendar month is very tight, however, claims can be made more than 14 days before the intended pay date which may assist those employers who pay in arrears. However, the room for flexibility for changing circumstances appears to be restricted.

PAYadvice.UK 20/11/2020

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