Accounting Web has reported that an error embedded in HMRC’s Coronavirus Job Retention Scheme (CJRS) calculator means employers may need to recalculate furlough claims for January.
HMRC announced it had uncovered a mistake in its CJRS calculator that could mean claims have been over or understated, they apologised, stating: “We’re afraid our CJRS calculator on GOV.UK contained a software error, which we have now corrected.”
As a result, employers will need to recalculate their CJRS claims if they used the calculator before 21st January and all of the following applied:
- The claim contained employees who are 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.
Where the employer used their employee’s January 2020 pay in the CJRS calculation, no correction is required.
Where the revised CJRS claim produces a different figure to the claim already submitted for January 2021, the employer needs to take the following action:
- Where the claim was too high, this should be corrected in the next CJRS claim submitted, or alternatively the employer can make a repayment online to HMRC by clicking here.
- Where the claim was insufficient, the employer should call the HMRC helpline to amend this by 1st March.