skip to navigationskip to main content

Flexible Coronavirus Job Retention Scheme

As we move into July the new Flexible Coronavirus Job Retention Scheme begins and HMRC has issued guidance on how to pay all or some of your grant back if you’ve overclaimed through the Coronavirus Job Retention Scheme.  There are also some important July dates to remember if you are claiming grants through the Self-Employment Income Support Scheme. Useful links to UK Government guidance and our previous updates can be found at the end of this article.

Repaying Overclaimed Grants Made Through the Coronavirus Job Retention Scheme

If you have made an error in a claim through the Coronavirus Job Retention Scheme that has resulted in an overclaimed amount, you must pay this back to HMRC.  HMRC has published guidance on how to repay an overclaimed amount.  You can either make a correction on your next claim or make a payment to HMRC.

If making a correction on the next claim you will be asked whether you need to reduce the amount to take account of a previous overclaim.  Your new claim amount will be reduced to reflect the overclaimed amount and you should keep a record of this adjustment for 6 years.

If you have overclaimed and you do not plan to submit any further claims or your next claim is less than your previous overclaim, then you should contact HMRC to let them know about your error and find out how to pay back any overclaimed amounts.  Once you have contacted HMRC you will be given a payment reference number and directed to make a payment. HMRC’s guidance on repaying grants received through the Coronavirus Job Retention Scheme can be found here.

Flexible Coronavirus Job Retention Scheme

From 1 July 2020 businesses can start to flexibly furlough eligible employees.  Any employee previously furloughed can now return to work on reduced hours or can continue to stay fully furloughed.

Businesses will need to agree the hours they want flexibly furloughed employees to work, pay employees for the time they work and continue to apply for a grant for the usual hours they work but remain furloughed for.  Claims for flexible furlough can only be made from 1 July 2020.

All claims under the Coronavirus Job Retention Scheme for the period up to 30 June need to be made by 31 July 2020 at the latest.

UK Government guidance on the Coronavirus Job Retention Scheme can be found here.

Self-Employment Income Support Scheme

The scheme currently allows self-employed individuals to claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.  If you are eligible and your business has been adversely affected, you must make your claim for the first grant on or before 13 July 2020.

The Self-Employment Income Support Scheme has been extended to allow a second claim to be made.  Self-employed individuals who are eligible for the second and final grant, and who have been adversely affected on or after 14 July 2020, will be able to make a claim in August 2020.  You can claim for the second grant even if you did not make a claim for the first grant.

UK Government guidance on the Self-Employment Income Support Scheme can be found here.

Links

Our previous updates can be found on Facebook and LinkedIn or on our website blog.

A UK Government business support website can be found here.  It contains guidance on all Coronavirus financial measures and business advice.

A UK Government general COVID-19 support website can be found here.  It contains guidance on all matters pertaining to the Coronavirus.

Working with you

Looking for pro-active accountants who'll help you make more profit and be more tax efficient?

cfw-about-us-320x200px.jpg

About us

We work closely with our clients and act for a broad range of business....

cfw-get-in-touch-320x200px.jpg

Get in touch

Simple way to contact us. Just fill in a simple form.

cfw-services-320x200px.jpg

Our services

Find out details about what we can do
for you.

Artboard 3
acca-platinum
image/svg+xml