CJRS January HMRC Error - Action Required!

HMRC have issued a warning around claims you may have made in January for variable pay employees - claims using HMRC's CJRS calculator will need to be re-calculated and submitted to HMRC. See HMRC bulletin below.

Coronavirus Job Retention Scheme

We would like to remind employers of an upcoming deadline for Coronavirus Job Retention Scheme (CJRS) claims, and to answer some questions they may have.

Also included is information on checking claims employers have made for variable paid employees – those not on fixed salaries – and more on HMRC publishing details of their CJRS claims from this month.

Checking their claims for variable pay if they’ve used the HMRC calculator

We’re afraid our CJRS calculator on GOV.UK contained a software error, which we have now corrected. If an employer in your constituency used it before 21 January to work out January claims for employees that are not on a fixed salary they’ll need to re-calculate their claims if: 

• they used an employee’s pay for January 2019 as reference pay, instead of 2020, and
• their pay was different in January 2019 to January 2020.

If an employer used their employee’s January 2020 pay they do not need to take any action.

If after they have made their re-calculation they find out their claim was incorrect and:

• the employer has claimed too much, they should amend this in their next claim or let us know as soon as possible and make a repayment online, through our card payment service or by bank transfer on GOV.UK.
• they claimed too little, please call the helpline to amend this by 1 March. 

Go to get help with the Coronavirus Job Retention Scheme for more information on how to amend a claim.

January claims – submit now

If an employer hasn’t submitted their claims for January, they must do so by the deadline of Monday 15 February.

As a reminder, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. Employers and their employees do not need to have benefited from the scheme before to make a claim, if employers and employees meet the eligibility criteria.

What employers need to do now

1. Check if they’re eligible and work out how much they can claim using our CJRS calculator and examples.
2. Submit any claims for January no later than Monday 15 February.
3. Keep records that support the amount of CJRS grant claimed, in case HMRC needs to check them. ‌

Publishing information about employers’ claims

In January we published the list of employers who have claimed under the CJRS for periods from December onwards, on GOV.UK. Starting from 25 February, on a monthly basis we will publish the names and Company Registration Numbers (for those who have one) of employers who make CJRS claims for periods starting on or after 1 December, together with an indication of the value of their claims.

We will not publish the exact amount of claims, but rather the band within which claims fall; for example £0 - £10,000, £10,000 – £25,000, or £25,000 - £50,000. You can find a full list of these bands on GOV.UK. The details we publish will not include information about the employers’ employees.

Details of CJRS claims will now be published monthly as part of HMRC’s commitment to transparency and to deter fraudulent claims. 

If an employer thinks publishing these details would result in a serious risk of violence or intimidation to them or others, they can request that details of their claims are not published. More details are given in our frequently asked questions below.

Employees will also be able to check if a CJRS claim has been made on their behalf through their online Personal Tax Account from 25 February. If they do not already have a Personal Tax Account, they can set one up on GOV‌‌‌‌‌‌.UK.

Frequently asked questions about the CJRS

You can find everything you need to know about the CJRS on GOV.UK, but here are some answers to the questions employers have been asking us recently.

How do employers ask HMRC not to publish their claim details?

If publishing an employer’s claim details could leave someone at risk of violence or intimidation, they can request for these not to be published by completing the online application form.

We will not publish an employer’s details until we have informed them of our decision on their application. Employers only need to apply once, as the decision will cover all CJRS claim periods starting from 1 December 2020.

Applications must be made by an employer and they can’t be made by an agent on their behalf.

Can employers claim for employees who are training?

Employers can claim for employees who undertake training while they are furloughed, as long as they don’t provide services to, or generate revenue for, their business or a linked or associated organisation. More information is available on GOV.UK.

Can employers furlough an employee if they are unable to work because they have caring responsibilities or are classed as clinically extremely vulnerable?

If an employee asks to be furloughed, employers can claim for them under the CJRS if;

• they have caring responsibilities resulting from coronavirus, such as caring for children who are at home as a result of school or childcare closing, or
• they are clinically extremely vulnerable, or in the highest risk group for severe illness from coronavirus according to the public health guidance for their area.

Go to check which employees you can put on furlough to use the Coronavirus Job Retention Scheme for other circumstances where an employer can furlough an employee.

The decision to offer furlough rests with the employer.