The changes to the Coronavirus Job Retention Scheme (CJRS) have been set out and the preparations taken by employers to get themselves ready.
From 1st July, employers can claim a more flexible grant for any employee who previously received a CJRS grant, and is now returning to work on reduced hours. Claims can also continue for employees who stay fully furloughed.
To read the full guidance or to view the live webinars offering support on the flexible furlough scheme, visit GOV.UK.
What Happens Next
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Claims for the period ending on or before 30 June, must be paid to HMRC by 31 July – this is the last date claims can be made.
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Employers must agree the hours and shift patterns they want employees to work from 1 July.
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Employers must pay employees’ wages for the time they’re in work and apply for a job retention scheme grant to cover the remainder of their usual hours for which they are still furloughed.
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Employers must claim for further furlough periods as needed. The first time a claim can be made for days in July will be 1 July.
Overclaimed amounts
Some employers have contacted HMRC to let them know that they have claimed too much. If this applies to your business, all you need to do is tell HMRC when your next claim is due so it can be paid it back. When making the claim, adjustments will need to be made to take the previous error into account. Your new claim amount will be reduced to reflect this. No further action needs to be taken, but records should be kept of the adjustment for six years.
If your business had made an error in a previous claim but does not plan to submit further claims, please contact HMRC so they can inform you of the repayment process.
Claiming for 100 or more employees?
If your business is claiming for more than 100 employees, HMRC have created a template to help with claims for periods starting on or after 1 July. To download the template, click here.
Paying employer National Insurance Contributions (NICs) and pension contributions
A condition of the CJRS grant is that employers pay the related PAYE tax, NICs and pension contributions due on wages. Until 31 July employers can continue to claim these for the hours the employee is on furlough. From 1 August employers will no longer be able to claim for NICs and pension contributions.
If your business thinks it may struggle to pay the PAYE tax and/or NICs from August, please contact HMRC as soon as possible. They will then work out a solution to ensure you are given the time to pay this back.
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 we will do what we can to assist.