Latest technical update on the Coronavirus Job Retention Scheme from HMRC

Coronavirus Job Retention Scheme

The deadline for Coronavirus Job Retention Scheme (CJRS) claims for periods in June 2021 is Wednesday 14 July 2021. If you submit claims for clients, you can help them to understand how to use furlough flexibly and their employer obligations.

You can claim before, during or after your client’s payroll is processed. It’s best to encourage your clients to provide the exact number of hours their employees will work, so you do not need to amend the claim later.

Remind your clients that they must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant, so not doing so will mean they’ll need to repay the whole of the CJRS grant and they may not be able to claim for future CJRS grants.

Changes to CJRS grants from July 2021

The UK Government will continue to pay 80% of furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June 2021.

In July 2021, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August 2021 and September 2021, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

Employers will need to pay the 10% difference in July 2021 (20% in August 2021 and September 2021), so that they can continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

To help you and your clients plan ahead for all future claim periods, the CJRS calculator is available to help you work out how much you can claim.

Use our updated CJRS template to make claiming easier    

We’ve updated our process for bulk claims to make it easier to add your clients’ details.

You can now use a template if employers are claiming for between 16-99 employees, and another if they are claiming for 100 or more employees. If you or your clients already use our previous 100 or more template, you will not need to download a new version and third-party software incorporating this will still work. You must enter all of the information in the right format before uploading the completed template so that their claim is processed quickly and successfully.

We’ve updated the process to help employers get their claim right first time and provide all the information needed to make sure their claims are not delayed or stopped. For example, if employers cannot provide a National Insurance number for an employee, you can now select a reason for this.

If you or your clients make a mistake, the template will highlight it to help you put it right before the claim is submitted. Mistakes that will be highlighted include:

·         details input in the wrong format

·         given incorrect details

·         duplicated or not given required information

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