HMRC have already issued 30,000 letters to employers who they have identified as potentially over reclaiming via the JRS. What do you need to do if you get one?
Receiving a letter doesn’t mean you have over-reclaimed, but you have a month (or 90 days after your reclaim) to voluntarily disclose an over-reclaim and avoid any penalties. If you haven’t done so already it’s time to double check all of your JRS reclaims.
What Should You Check?
- You have paid your employees 80% of their normal wages for all furloughed periods. This includes during September and October when government funding dropped below 80%.
- Check the furlough payments have been calculated correctly by using the governments furlough calculator. The furlough reclaim is a maximum of £2500 for each.
- Ensure you have not included any non-contractual bonus payments.
- All workers on your reclaim are eligible. They must have been on an RTI submission prior to 19th March 2020.
- During flexible furlough that you have calculated normal working hours correctly and paid the appropriate furlough rate and normal rate for hours worked.
What If You Find A Mistake?
If you find a mistake you need to take action to voluntarily report the over-reclaim (follow this link).
By doing this you will avoid any penalties.
What If You Don’t Find Any Mistakes?
Flags may have been raised because;
- You have re-employed someone so that they could be furloughed.
- You have a mixture of weekly and monthly paid furloughed workers.
- Your pay period different to standard for example you pay 25th to 24th of the month or you pay a month in arears.
These won’t mean your furlough reclaim was incorrect but you will need to speak to HMRC to add these to your case notes. You will need to call the number on the letter from HMRC and quote the case reference number provided.
What Happens Next?
Once a month has passed a representative from HMRC will review your case taking into consideration any notes added to your case file. They may conclude that no further action is needed or contact you to request further supporting information. We anticipate this may take a number of months due to the volume of investigations.