The Coronavirus Job Retention Scheme is over – here’s what you need to do next05/10/2021
The Furlough scheme, or Coronavirus Job Retention Scheme (CJRS) is officially over. Here is a quick rundown of some of the most important points you need to consider in its aftermath:
Last claims and corrections
You have 28 days from your last claim (which needs to be made within two weeks of the month it applies to) to correct mistakes. That means that by late October, you need to ensure your September claim (if you made one) is correct, and you must do so via the online portal. If you don’t manage this, you have a 90-day window to notify HMRC directly (in the case of overclaiming) so that you can arrange a repayment.
Factor CJRS payments into your tax return
Following your last payment from the CJRS, you need to ensure everything is declared accurately on your company’s tax return. This is because CJRS payments are treated as taxable business income.
Adjusting your workforce accordingly
As unfortunate as it is, there will be cases where employers can no longer afford certain staff members once the CJRS has ended. Furlough has made no difference to your employee’s employment rights, so you will need to ensure you follow standard procedures, including: giving employees the correct amount of notice, making sure they receive the correct amount of redundancy pay and consideration of their statutory entitlement, and determining their income tax and National Insurance contribution treatment.
If you need help readjusting to a post-CJRS world, contact JW Hinks on 0121 456 0190. Our friendly team of experienced professionals can help you get your business running smoothly in record time and with a minimum of hassle.