A calculator coding error, which the Revenue has acknowledged and subsequently rectified, could impact SMEs and their furloughed employees.
HMRC has confirmed that a software error in its Coronavirus Job Retention Scheme (CJRS) calculator means that many businesses will need to recalculate furlough claims for January 2021.
Recalculations will need to be made where employers used the calculator prior to 21 January 2021 to calculate January 2021 claims and all of the following applied:
- The claim contained employees who were not on a fixed salary
- The employer used an employee’s pay for January 2019 as reference pay, instead of 2020
- The employee’s pay was different in January 2019 to January 2020
Should an employer find that, upon recalculation, the claim was indeed incorrect, the following steps can be taken:
- Where the claim exceeded the correct amount, this should be amended in the next CJRS claim submission. Alternatively, the employer can contact HMRC and make a payment directly either online, through a bank transfer, or via the Revenue’s card payment service.
- If the claim was less than the correct amount, employers should contact HMRC by no later than 1 March 2021 to correct this.
If you have any concerns about possible miscalculations relating to the CJRS, we are available assist you in checking claims. Please contact your usual Beavis Morgan Client Partner or email email@example.com.