The potential for a VAT penalty on deferred VAT, upcoming CJRS deadlines, changes to the CJRS from 1 July and recent CJRS guidance changes all feature this week.
VAT deferral potential penalty
The VAT deferral new payment scheme was available to businesses who deferred VAT due between 20 March 2020 and 30 June 2020. This scheme closed last week on Monday 21 June 2021. HMRC has now updated the guidance setting out what businesses should do by 30 June 2021 now that the deferral scheme is closed to applications. Failure to make payment of the deferred VAT in full or to make an arrangement to pay by Wednesday 30 June 2021 may result in a 5 percent penalty, according to the guidance.
The CJRS
The deadline to submit CJRS claims for periods in June 2021 is Wednesday 14 July 2021, unless reasonable excuse is available for late submission. Amendments to May 2021 CJRS claims must be made by today Monday 28 June 2021.
The UK Government will continue to pay 80 percent of furloughed employees' usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June 2021.
Conditions of claiming CJRS grants
Employers are reminded that for the months of May and June, they must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant; not doing means they’ll need to repay the whole of the CJRS grant and they may not be able to claim for future CJRS grants.
Changes from 1 July 2021
From Thursday 1 July 2021, CJRS grants will cover 70 percent of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August 2021 and September 2021, this will then reduce to 60 percent of employees' usual wages up to a cap of £1,875.
Employers will need to pay the 10 percent difference in July (20 percent in August and September), so that they can continue to pay their furloughed employees at least 80 percent of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. Employers continue to be required to pay the associated employee tax and National Insurance contributions to HMRC in these months.
For the hours not worked employers can continue to choose to top up their employees' wages above the 80 percent level or cap for each month, at their own expense.
Furloughing flexibly
Employers don’t need to place all their employees on full furlough. They can use the CJRS flexibly to bring their employees back to work for some of their usual hours. Employers can claim for a portion of their usual wage costs for the hours spent on furlough.
The CJRS guidance was updated recently as follows:
- withdrawal of the .ods and .xls bulk claim templates, and
- amalgamation of the bulk claim process for 16+ employees (rather than having a separate process for 16-99 employees and 100+ employees).
|
Page title
|
Changes
|
|
Claim for wages through the Coronavirus Job Retention Scheme https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
|
Text update:
If you’re putting lots of employees on furlough
You candownload a templateif you’re claiming for16 or moreemployees.:
16 to 99 employees100 or more employees
You need to upload the templatefilein .xlsx or .csvformatwhen you claim.If you have already saved the claim forms in a different format, such as .xlsor .ods, these will no longer be accepted but you can save them as .xlsx or .csv files and then upload them.
|
|
Download a template if you're claiming for 100 or more employees through the Coronavirus Job Retention Scheme Download a template if you're claiming for 100 or more employees through the Coronavirus Job Retention Scheme
|
Page title update:
Download a template if you're claiming for16100or more employees through the Coronavirus Job Retention Scheme
Removal of .XLS Format Template
Removal of .ODS Format Template
Replacement of .XLSX Format Template with .XLSX template from Page 16 (claiming for 16-99 employees)
Additional text at the top:
“You need to upload the template file in .xlsx or .csv format when you claim. If you have already saved the claim forms in a different format, such as .xls or .ods, these will no longer be accepted but you can save them as .xlsx or .csv files and then upload them.”
Change to text in last bullet to remove reference to .xls and .ods file types, and addition of text “or alternatively you can save existing .xls or .ods file types as .xlsx or .csv prior to upload”
|
|
Download a template if you're claiming for 16 to 99 employees through the Coronavirus Job Retention Scheme
https://www.gov.uk/government/publications/download-a-template-if-youre-claiming-for-16-to-99-employees-through-the-coronavirus-job-retention-scheme
|
Whole page to be removed, and redirect URL to page above.
|
LOADING...