June 15, 2020 / UK
On Friday 12 June further complex guidance was published on the CJRS. This is likely to cause a headache for many payroll managers given how complicated the scheme has now become coupled with the pressure of getting the calculations right.
The key points to note are:
Employers will also have the ability to pay back claims if amounts have been overclaimed, coupled with making corrections for the claim periods to 30 June 2020. Across all of the above, it remains imperative that full records are maintained, including an audit trail of which version of HMRC’ guidance you applied at the time of each claim, along with any subsequent adjustment made. All correspondence, communications and guidance issued to employees should be retained, along with their formal changes to their contracts and working versus furloughed hours.
HMRC have provided 30 examples of how the new scheme is to be applied in practice, which illustrates just how complicated it is becoming. Having to de-couple the payroll calculation from the furlough claims, but also ensuring the right amounts are paid to staff, is going to be a challenge for anyone with anything but the simplest of payrolls…
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