TEN Magazine April 2020 TEN Magazine April 2020 | Page 6
GOVERNMENTS JOB RETENTION SCHEME
Top tips when making an application
for the Government’s Job Retention
Scheme and a warning to get it right!
HM Revenue & Customs
(‘HMRC’) opened taking Job
Retention Scheme (‘JRS’)
applications at 8am today
(Monday) but employers
must make sure that their
claims are correct and
are accurate - those that
don’t risk being seen as
fraudulent, say London
tax and advisory firm
Blick Rothenberg.
Nimesh Shah, Blick Rothenberg, said: “The
Government and HMRC are very concerned
about fraudulent JRS claims, and the rules
and system have been designed to safeguard
against this as far as possible. “
He added: “The Government has been vocal
that it can and will audit employers and can
claw back grants from fraudulent claims.
Errors with applications are inevitable, given
the complexity associated with this untested
scheme, and it’s hoped that HMRC will
recognise the difference between innocent
and deliberate behaviour, but claimants must
make sure that their application is as
accurate as it can be.
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Nimesh said: “To introduce a new scheme of
this scale, and have an operational portal
ready within a month is impressive and
HMRC and the Government should be
applauded for their efforts. It is hoped that
HMRC’s system is able to cope with the
inevitable demand, and that payments can
be processed and paid within the 6 working
day timeframe.
“Businesses have anxiously been waiting to
make their application as they precariously
manage their cashflow on a daily basis they
can now make the claim and move forward
but they do need to make sure it is accurate”
He added: “There are lots of practical issues
that businesses and HMRC will need to be
ready for over the forthcoming weeks as the
applications are submitted. HMRC have
produced a step-by-step guide for employers
to help them understand the rules.
Blick Rothenberg’s 5 immediate top tips
when making an application are:
1.
Businesses need to make sure that they
follow correct legal process when
furloughing an employee, as it is strictly
a change to their employment contact.
2.
Careful calculations are required in
relation to holiday pay, maternity pay,
sick pay, pensions and salary sacrifice
as these can give rise to anomalies.
3. The grant can only be paid into the UK
bank account of employer making
the claim – this is an issue if an agent
normally handles a company’s payroll
or for an overseas business that does
not have a UK bank account.
4.
When making the application, all the
information must be submitted at once
i.e. there is no option to save and return
to the form later. In addition,
amendments cannot be made to the form
after submission, so it’s important that
the application is submitted fully and
accurately at the first attempt.
5.
HMRC will not provide any e-mail
confirmation for submission and the
employer should print the submission
record and make a note of the
reference number.
Nimesh Said: “When the scheme was first
announced, the original cost estimates were
around £10 billion. With the take-up of the
scheme being higher than expected, with
almost 9 million workers being placed on
furlough, that cost estimate was revised
upwards to £30 - £40 billion. With the
extension to the scheme until the end of
June, the total cost will be in excess of
£50 billion.”
Blick Rothenberg is a market leading
accounting, tax and advisory practice.
Visit: www.blickrothenberg.com
twitter / facebook / instagram: @trophexlive