Commentary

A8.203 Administration of the coronavirus job retention scheme

Administration and compliance

A8.203 Administration of the coronavirus job retention scheme

A8.203 Administration of the coronavirus job retention scheme

The scheme pays a grant to the employer (this is different from a loan). The grant is a reimbursement to the employer, therefore the employer will make the wage/salary payment to the furloughed worker and then be reimbursed by HMRC.

Employers will need to:

  1.  

    •     designate affected employees as 'furloughed workers'

  2.  

    •     notify these employees (see below for commentary on the updated guidance on 17 April)

  3.  

    •     submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC online service) which became live on 20 April 2020 (see below for further details)

Administration for November 2020 extension

The Government has confirmed that businesses will be able to claim either shortly before, during or after running payroll as under the existing scheme. Claims can be made from Wednesday 11 November. Claims made for November must be submitted to HMRC by no-later than 14 December 2020. Claims relating to each subsequent month should be submitted by day 14 of the following month1. There is no gap in eligibility between the previous end date of the CJRS and the extension2.

If you have missed the claim deadline, HMRC may accept late claims if you have a reasonable excuse, have taken reasonable care to try and claim on time and claimed without delay as soon as you were able to. HMRC guidance directs employers to contact them on this link to ask to submit a late claim.3

Agreeing to furlough employees

As

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