For the month of July, the CJRS Furlough grant support from the government via HMRC reduces to 70% of the employee’s usual pay for hours not worked. This is despite the fact that “Freedom Day” in England has been delayed four weeks to 19 July 2021, and now called “Terminus Day”. The government support to employers will then reduce to 60% in August and September. After September, the furlough scheme will no longer be available for businesses to claim.
Correcting Errors In Earlier Furlough Claims
The numerous changes in the method of calculating CJRS furlough grants will no doubt have resulted in errors by some employers at the start of the furlough scheme.
Remember that you are required to tell HMRC about over claimed CJRS grants as part of your next claim. You will be asked when making your claim whether you need to adjust the amount down to take account of a previous over claim. Your new claim amount will be reduced to reflect this. You should keep a record of this adjustment for 6 years.
You should also be aware that HMRC may levy a penalty even if the error is careless or due to a misinterpretation of the rules.
You might therefore like us to check any previous claims that you have made.
If you have made an error that has resulted in an under claimed amount, you should contact HMRC to amend your claim. As you are increasing the amount of your claim HMRC will need to conduct additional checks.
If you need help understanding furlough and how it affects your bookkeeping, then contact our expert accountants today. Our team at McIntyre Stuart have over 20 years of experience and are here to help. You can give us a call on 01353 649 100 if you need to get in touch with us as soon as possible.