As we start another week, 

I felt it was important for me to share the latest updates with you regarding the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme.

HMRC Recovery Powers

HMRC have put together the draft legislative package to reclaim payments under CJRS and the Self-Employed Income Support Scheme. This is subject to a HMRC consultation which comes to an end on 12th June. Under the draft legislation, HMRC will have the power, by way of a 100% tax charge, to recover payments which were either:

  • Not due
  • Not used to pay wages and PAYE
  • Not used to make pension contributions

Penalties will be imposed where there has been deliberate non-compliance.

This comes at the same time as HMRC have notified that, to date, they have picked up on nearly 2,000 fraudulent CJRS claims to date. This is, in part, due to ongoing calls to their Fraud hotline number 0800 788887 and also through their online whistle-blower report webpage.

Big reminder10th June last date to furlough new employees is fast approaching.

Coronavirus Job Retention Scheme Changes

  • CJRS will run until 31st October 
  • The Scheme will remain as it is until and including 30th June. 
  • From 1st July the CJRS will become flexible. 
  • From 1st July businesses can bring employees on and off furlough.
  • The Scheme closes to new entrants from 30th June, after that date employers will only be able to furlough employees who were furloughed for the 3 week period up to 30th June. That means those employees were furloughed by, on or before, 10 June in order to have complied with the minimum 3 week furlough period.
  • Employers will have until 31st July to make CJRS claims for periods up to 30th June. It would be wise to make two separate CJRS claims, one up to 30th June and, where applicable, one from 1st July.
  • Employers who have held back, for one reason or another, from making their first CJRS claim should, however, make one on or before 30th June, otherwise they won’t be eligible to use CJRS from 1st July onwards.
  • From 1st July onwards, the maximum number of employees an employer can claim for, regarding each claim period, can be no more than the highest number claimed for in a given period up to 30th June. For example, XXXXXXX Ltd claimed for 8 employees in March, 7 in April, 12 in May and 10 in June. From July, in any given period, the maximum number is therefore restricted to 12 employees.
  • Businesses will pay wages in full for the period the employee is un-furloughed but can claim under CJRS whilst the employee is furloughed.
  • From July onwards the furlough cap will be pro-rated to the furlough hours. For example, in July, if the employee works for 40% of the month, the furlough cap of £2,500 is restricted down to £1,500 (i.e. 60% of the original cap of £2,500).
  • Employers will need to provide details of the usual hours an employee is expected to work as well as the actual hours worked.
  • Any working hours arrangement between the employer and employee must cover at least one week and be confirmed in writing to the employee.
  • When claiming for the furloughed hours the employer will need to report and claim for a minimum 1 week period.
  • The employer can claim over a longer period such as 2 weekly or monthly cycles.
  • June and July, businesses can continue to claim the full 80% of wages re furloughed employees under the Scheme.
  • From 1st August the CJRS claim remains at 80% of the salary/wages. However businesses will meet the employer’s pension contributions and employers NI.
  • From 1st September the Government will meet 70% of the wages up to £2190. The remaining 10% to be met by the employer.
  • From 1st October the Government will meet 60% of the wages up to £1875. Employers will need to meet the remaining 20%.
  • From 1st November the CJRS comes to an end.
  • Further information on calculating the flexibility CJRS claims will be made on 12th June.

As always, if you have any questions or you would like to discuss how this may effect you and your business, please get in touch and I will be happy to talk it through with you.
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