HMRC has released a new document that covers the most common errors employers may have made in coronavirus job retention scheme (CJRS) calculations.
Commonly referred to as the furlough scheme, any errors made in CRJS calculations must be amended for any claims made from the start of the next calendar month.
As the guidance on the CJRS scheme changed, HMRC expects employers to take this into account when making their claims and calculations.
The document will also help employers to decide if they need to repay anything to HMRC or provide a defence of their actions during the scheme's operation.
From July 2021, a taper rate for furlough was introduced, when the Government subsidy for employee pay was reduced from 80% to 70% of pay.
If employers claimed 80% of reference pay after the taper was introduced, they need to recalculate the total and repay any difference to HMRC.
In the Q&A released by HMRC, it states:
"HMRC would generally accept that any business acting in good faith and instructing employees to cease work as a result of Covid-19 would be doing so because they were affected by the pandemic or the associated economic circumstances.
"HMRC will not seek evidence of the effect of Covid-19 on the claimant's business, except as part of a wider enquiry into scheme eligibility, such as employees working whilst being claimed for."
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