The Coronavirus Job Retention Scheme (CJRS), commonly known as furlough, is approaching its final stages. What considerations do businesses need to be aware of?
From 1 July 2021 businesses using the scheme will need to begin contributing towards the 80% minimum salary contribution – 10% in July, increasing to 20% in August and September (with the government making up the other 70% and 60% respectively).
Around 26,000 investigations have already been conducted by HMRC to investigate CJRS errors and fraud. If any overpayment was considered ‘deliberate and concealed’, penalties can be issued by HMRC for up to 100%. Therefore, proactivity in ensuring your business has calculated furlough correctly is vital to avoid any penalties.
A few points to consider for businesses using the scheme:
• Ensure calculations are being adjusted to reflect the reduction in government contribution from July
• Reply to any letters from HMRC with in the specified deadline – this could be as tight as two weeks
• Ensure any use of the scheme can be backed up by evidence and is still appropriate
Please get in touch with our Payroll department on 01788 539000 or 0116 261 0061 if you would like any further information or assistance with the CJRS.
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