We have received further guidance on the Coronavirus Job Retention Scheme which highlights important dates that may impact you in the coming weeks.
Important Dates
- The scheme will close to anyone who has not been furloughed for 3 weeks by 30 June. You will only be able to claim for employees after that if they have been furloughed for a full three-week period at any time before the end of June.
- If you intend to furlough an employee who has not been furloughed before, you will need to agree that with them and start their period of furlough on or before 10 June. This is the last day on which someone who has never been furloughed before can start a period of furlough and qualify for the scheme. This ensures the minimum three-week period is complete by 30 June.
- You will then have until 31 July to make a claim for any periods of furlough up until 30 June. This applies to both employees furloughed for the first time and those you have previously furloughed and claimed for.
The Future of the Scheme
- The rules of the scheme are changing from 1 July.
- On 12 June, HMRC will publish full guidance on all the scheme changes. This will be available on GOV.UK by searching for ‘Coronavirus Job Retention Scheme’. Webinars offering more support on the changes will also be available to book online from 12 June.
- From 1 July, you will have the flexibility to bring previously furloughed employees back to work part time. You can decide the hours and shift patterns they work to suit the needs of your business. You will pay their wages for the time they are in work and can apply for a scheme grant to cover any of their normal hours they are still furloughed.
- For periods starting on or after the 1 July, the maximum number of employees you can claim for in any period cannot be higher than the maximum number you have claimed for in a previous period. For example, if your highest single claim for periods up to 30 June was for 100 people, you cannot claim for more than this number in later periods.
- From 1 August, you will need to contribute towards the wage costs of your furloughed employees until the scheme ends on 31 October.
Making Changes to your Claim
If you have made an error in a Coronavirus Job Retention Scheme claim that means you received too much money, you must pay this back to HMRC.
HMRC have updated the application system so you can inform them if you have over-claimed. When you apply you will be asked if you need to reduce the amount to take account of a previous error. Your new claim amount will be reduced to reflect this. You should then keep a record of this adjustment for six years.
If you have made an error in a Coronavirus Job Retention Scheme claim and do not plan to submit further claims, HMRC are working on a process that will allow you to let them know about your error and pay back any amounts that you have over-claimed.
If you have any questions regarding the scheme or need some support with applying, please do not hesitate to get in touch. Please call the Payroll team on 01454 619900 or email payroll@dunkleys.accountants and they will do what they can to assist.