Employers need to submit claims on HMRC’s CJRS online portal for any furlough payments under the CJRS that relate to periods ending on or before 30th June by 31st July 2020. You will no longer be able to submit a claim for the period up to 30th June after 31st July.
The CJRS was originally introduced by the government from 1st March in response to the coronavirus pandemic in order to give financial support to businesses and employees. Under this scheme all employers, regardless of size or business sector, could claim from HMRC a payment for 80% of the wage costs for employees that were furloughed up to a maximum of £2,500 per month per employee.
From 1st July 2020 employees that were previously furloughed can be brought back to work on a part time basis by their employers once an agreement is reached between the employer and the employee. Employers will still be able to claim under the CJRS for hours that are not worked by the employee. The new grant claim will be based on hours not worked by the employee and the normal hours an employee would usually work.
HMRC has also updated their guidance to confirm employers can claim amounts paid to an employee who is serving their statutory or contractual notice period up to the claim limit of 80% of their pay up to a maximum of £2,500 per month. However, grants cannot be used to substitute redundancy payments.
HMRC plan on introducing a method through the tax system to recover grant amounts overclaimed by employers under the CJRS. Repaying overclaimed grant amounts back will reduce or prevent any potential tax liability under that legislation. Tax liabilities may be due on any overclaim amounts. Further details will follow.
Interested in finding out more? Join BrightPay for a free webinar where we explore the key changes in relation to flexible furlough, phasing out of the Coronavirus Job Retention Scheme and changes to making a claim. Places are limited - click here to book your place now.