There is a general impression, both in mainstream media and, more importantly, within HMRC, that up to 10% of claims for CJRS may be “inaccurate.” HMRC has announced that it will be enquiring into claims and it anticipates that about 25% of all claims will be looked into.
Whilst we are confident that any such enquiries into our clients’ claims will prove unproductive it’s right to be prepared, for dealing with HMRC can be stressful and time consuming, even if you are in the right.
It may be worthwhile to ensure that documents are readily accessible just in case you are one of the unlucky ones.
Useful documents would include:
- Details of your employees’ standard hours and pay
- A copy of the RTI submission that proves an employee’s eligibility to furlough pay (if Robson Laidler prepare your payroll then we will hold this)
- Copy of the letter or email sent to employees informing them that they are furloughed and the rules applying to their furlough period – ie that they must not undertake any work for the employer whilst furloughed.
- Evidence that the rules were followed – the use of email “out of office” messages for example.
Just to emphasise – a furloughed employee must not undertake any work at all, not even checking emails. Doing so could invalidate the CJRS claim. However, study and training is allowed.
Employers should also note that we are expecting a few issues around the CJRS to be clarified in the Budget on 3 March. The £1,000 payment per furloughed employee has not, to date, been made law. The anticipation is that the Budget will extend the CJRS, and so make the £1,000 payment unnecessary.
Contact us through the usual channels if you require any further information or advice on this matter.