Coronavirus Job Retention Scheme (CJRS) claims need to be made now
Thousands of businesses that wish to make claims under the job retention scheme up until the end of June need to do so by the end of the month or lose out, but many may not be aware, say leading tax and advisory firm Blick Rothenberg
Andrew Sanford, a partner at the firm said: “Claims for the period have to be in by 31 July after that they will not be accepted. The deadline is fast approaching and many businesses may not be aware of the deadline.”
He added: “Whilst it may seem surprising that some claims have not yet been submitted, the complexities of the claim itself and the demands on the business owner, have meant that for some businesses the claims are still to be made.”
Andrew said: “July 31 is a key date for CJRS claims. Some businesses, particularly smaller ones, may have been waiting to make a single claim covering the full period – they need to act quickly, or they will lose the opportunity.
If the payroll date is not the month end, or there is a weekly or fortnightly payroll, a short period claim will be needed to bring in all amounts up to the 30 June – and this also needs doing by 31 July.
He added:” For claims covering the month of July onwards, there are some significant changes to the process. Even if you are confident that you understand CJRS and have made all your claims up to 30 June, extra work will be needed in the coming months. From July, employees can be “flexibly furloughed” for part of their working week, but it is not as simple as saying that somebody working 2 days per week is furloughed for 60% of the time – you need to calculate their “usual hours” based on their working pattern last year, and using a calendar (not working) day basis. All of this is explained in the detailed HMRC guidance, but it is far from straightforward.
“Also, you can’t make the claim until you know the actual hours worked in the month – so this may mean that the funds do not reach your bank account before your normal salary payment date. You will either have to make an estimated claim and amend it later or be ready to make the claim promptly as soon as you have the information.”
Andrew said: “ The amount you can claim is changing each month – from August, no claim can be made for NIC and pension contributions, and for September and October you will have to contribute to furlough costs, so that the employee always receives at least 80% of their usual pay. The contribution for September will be 10%, and for October, 20%.
He added: “You cannot put any new employees on furlough for claims after 30 June, and the maximum claim will be limited to the maximum number of employees furloughed in any month prior to June. You may have to do two or more claims each month – because the amount you can claim is changing each month, separate claims have to be made for each calendar month. If the payroll date is not the month end, you will have to do an additional claim for the extra few days at the beginning or end of each month.
Andrew said: “Finally, the scheme is ending on 31 October, with all claims having to be submitted by 30 November. So, in this case it will definitely be over by Christmas!”