CoronavirusHMRC

CJRS calculator error forces small businesses to re-evaluate

A new update to the calculator means claims for the period in January 2021 need to be recalculated, as they may have been ‘over or understated’ leaving employers and employees short

The Accountancy Partnership has urged small businesses to recalculate furlough claims for January 2021, following a coding error being found in HMRC’s Coronavirus Job Retention Scheme (CJRS) calculator.

The group has asked those that have recently used the calculator to work out furlough payments to take another look at their figures, to avoid “falling foul” of the job retention scheme rules, and potentially being prosecuted for furlough fraud.

HRMC has suggested that claims made using the calculator before 21 January, that contained an employee not on a fixed salary, used 2019 pay as a reference, instead of 2020, and if the employees pay was different in January 2019 to January 2020, should be resubmitted.

A new update to the calculator means claims for the period in January 2021 need to be recalculated, as they may have been “over or understated” leaving employers and employees short.

Lee Murphy, director at The Accountancy Partnership, said: “Mistakes can happen even at HRMC; however, it is disappointing to see the onus falling to the already stretched small businesses owners to correct their claims.

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“We hope that HRMC will work with the businesses affected to correct their claims, so that those in need of support receive the correct amount to ensure their future survival.”

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