[UK] CJRS compliance reviews

The Coronavirus Job Retention Scheme (CJRS) is coming to an end and it is time for employers to take stock and ensure they have remained compliant, Lancashire Business View reports.

The CJRS was introduced in March 2020 to aid employers to retain their workforce as they bore the brunt of the pandemic. Initially, the scheme covered 80 per cent of the employee’s regular earnings and the associated employer National Insurance and Pension costs.

The announcement of the flexi furlough scheme represented the first major rule change, it allowed employees to return to work on a part-time basis while their employer paid furlough for the hours not worked.

In the months that followed, the scheme was wound down, with employers expected to contribute towards the furlough payments before its planned demise on 31 October 2020. A replacement scheme, the Job Support Scheme was poised to kick in, however, the Government u-turned and extended the CJRS scheme.

During the Spring Budget, the Chancellor confirmed that the scheme would run until 30 September 2021 before coming to a permanent end. The employer contribution would once again be brought in as that end date approached.

Where we are today

In the final month of the CJRS scheme, there had been around 12 million employees furloughed and over 1.3 million employers claimed through the scheme. Although the scheme failed to capture everyone, overall, it has been successful and provided welcome support for many employers and employees across the country.

With life returning to something like pre-COVID normality for many, the same applies to the life at HM Revenue & Customs. As of 30 June 2021, HMRC had opened 6,150 inquiries into suspected overpayments through the CJRS scheme due to error or fraud and compliance reviews of all the COVID support schemes are undoubtedly going to be top of HMRC’s agenda over the coming years. Being prepared for an inquiry is therefore crucial for businesses.

HMRC is encouraging all employers to review their submitted  claims in case of mistakes. If an error is found and an overclaim has taken place, this can be offset against the next furlough claim or repaid directly to HMRC.

Source: Lancashire Business View

The Coronavirus Job Retention Scheme (CJRS) is coming to an end and it is time for employers to take stock and ensure they have remained compliant, Lancashire Business View reports.

The CJRS was introduced in March 2020 to aid employers to retain their workforce as they bore the brunt of the pandemic. Initially, the scheme covered 80 per cent of the employee’s regular earnings and the associated employer National Insurance and Pension costs.

The announcement of the flexi furlough scheme represented the first major rule change, it allowed employees to return to work on a part-time basis while their employer paid furlough for the hours not worked.

In the months that followed, the scheme was wound down, with employers expected to contribute towards the furlough payments before its planned demise on 31 October 2020. A replacement scheme, the Job Support Scheme was poised to kick in, however, the Government u-turned and extended the CJRS scheme.

During the Spring Budget, the Chancellor confirmed that the scheme would run until 30 September 2021 before coming to a permanent end. The employer contribution would once again be brought in as that end date approached.

Where we are today

In the final month of the CJRS scheme, there had been around 12 million employees furloughed and over 1.3 million employers claimed through the scheme. Although the scheme failed to capture everyone, overall, it has been successful and provided welcome support for many employers and employees across the country.

With life returning to something like pre-COVID normality for many, the same applies to the life at HM Revenue & Customs. As of 30 June 2021, HMRC had opened 6,150 inquiries into suspected overpayments through the CJRS scheme due to error or fraud and compliance reviews of all the COVID support schemes are undoubtedly going to be top of HMRC’s agenda over the coming years. Being prepared for an inquiry is therefore crucial for businesses.

HMRC is encouraging all employers to review their submitted  claims in case of mistakes. If an error is found and an overclaim has taken place, this can be offset against the next furlough claim or repaid directly to HMRC.

Source: Lancashire Business View