Employment Tax

Coronavirus job retention scheme reviews

Produced by Tolley
  • 21 Dec 2021 16:42

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Coronavirus job retention scheme reviews
  • Coronavirus job retention scheme (CJRS) compliance activity
  • Why conduct a CJRS review?
  • Sectors particularly affected
  • Common errors in CJRS claims
  • Furlough process
  • Salary sacrifice errors
  • Pay dates and pay periods
  • Training
  • Process for reviews
  • More...

Coronavirus job retention scheme reviews

Coronavirus job retention scheme (CJRS) compliance activity

The CJRS has closed. This means that HMRC is likely to focus on compliance work on the claims made over the period of the scheme and it is recommended that businesses review their claims to ensure that they are correct and accurate.

Details of the CJRS scheme are provided in the Coronavirus job retention scheme (CJRS) guidance note.

HMRC began some targeted compliance work in relation to CJRS with 3,000 letters going out to employers widely reported in August and September 2021, for example from ICAEW and AccountingWEB. The issue is also explored further in ‘Beware the flood!’ by David Francis in Taxation, 30 September 2021, 16. With our understanding that HMRC has both funding for this work and targets for recouping on claims ― ‘£7 billion of fraudulent or erroneous CJRS claims’ according to the Taxation article ― employers can expect to need to review their claims to be in a good position prior to any contact from HMRC in relation to compliance.

Why conduct a CJRS review?

The CJRS was implemented relatively quickly due to unexpected circumstances. With it being a completely new scheme with a quick introduction, as illustrated by being set out in Treasury Directions rather than incorporated into existing, it is likely that employers did not have the required time to understand all their processes and policies in detail before implementing and utilising CJRS, with all its complexities.

It is therefore an area of relatively high risk. Best practice

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