CJRS Claims and Changes to the Process : Payroll News
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CJRS Claims and Changes to the Process

by The Payroll Manager on 07/02/20

This is more a personal message so that you can get an idea of how difficult it has been to keep up with the UK Government's ever evolving CJRS.

Obviously we understand that these are unprecedented times and that everybody is working extremely hard to ensure funding is available for the furloughed workforce. However the strain is weighing heavily upon everybody in the chain: HMRC is struggling to implement the changes and to update staff, agents and business people, and we are feeling the pressure of meeting the objective of getting grants into client bank accounts.

Then of course there is the factor that the process of claiming a grant is not the most logical. An example is the Government's new rule that means each claim can only cover one calendar month; when the sensible solution would be to process by tax weeks or months. In June, for example a weekly payroll with a week ending Saturday 27th June, has needed a second small claim for the final few days of the month. It is time consuming and ill thought through.

As a gesture of goodwill we will be running these small period claims for June free of charge. However we just cannot do this until the end of October when the scheme ends; it would mean that we were undertaking twice the work by processing two claims for each month. Until now we have just about covered our costs.

So from 1st July clients will have the choice of paying for one claim or two claims per month. We can advise which would be best in each case. The main factor will be the timing of the claim. Where there is the decision to have one claim per month there may well be a wait for the final period information to become available, so the grant will arrive in bank accounts in the following month. If you need the funds sooner then two claims would be the most suitable option.

This problem can also affect monthly and four-weekly payrolls in the same way. The only monthly payroll that will be unaffected is when employees are paid and work for a full calendar month.

Clients will be informed of the contents of this post by e-mail in the coming week.

We have enabled the comments on this post so if you have a question please feel free to ask.

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