Sentient Group Ltd
 
Info Update 2020/40                                                        Issue Date: 14/07/2020
 
Coronavirus Job Retention Scheme (CJRS) Update
 
 On 11th July 2020 the government issued some minor, but important, updates in respect of the CJRS.

One update relates to claims for payments covering notice periods following redundancy. The new wording in the guidance for both employees and employers caused some initial concern as it did not address an employer being able to claim for a contractual notice period. Naturally this caused some concern to employers.

Whilst not legally binding, there has been confirmation by HMRC in a webchat on 13th July 2020 that contractual notice, and not just the statutory minimum can be claimed under the CJRS. We expect that this will become clear in a further update to the Guidance.

Advice regarding deleting claims has also been updated - this must be done within 72 hours - and also advice relating to if you have overclaimed any amount.

New legislation is being introduced to recover overclaimed grant amounts through the tax system. If employers “repay any overclaimed grant amounts back through the above methods then this will reduce or, if the full amount is repaid, prevent any potential tax liability under that legislation.” Further guidance on this will be issued in due course.

Additionally, the government have published a new list of individuals (together with further information on each) you can claim for who are not employees:
  1. Office holders
  2. Company directors
  3. Company directors with an annual pay period
  4. Salaried members of Limited Liability Partnerships (LLPs)
  5. Agency Workers (including those employed by umbrella companies)
  6. Limb (b) Workers
  7. Contingent workers in the public sector
  8. Contractors with public sector engagements in scope of IR35 off-payroll working rules (IR35)

Clearly the above would need to have been furloughed previously (before 10th June 2020) to be able to claim under the scheme.

Finally, in relation to the revised scheme from 1st July 2020, the guidance has confirmed that “HMRC will not decline or seek repayment of any grant based solely on the particular choice between fixed or variable approach to calculating usual hours, as long as a reasonable choice is made.”

As ever we will keep you up to date with any new guidance that comes along and whether you need to wear a face mask to read it.
 
 
The advice and comment in this update is not meant to be an authoritative statement of the law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.
 
 
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