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UK: Businesses to confirm job retention scheme claims (COVID-19)

UK: Businesses to confirm job retention scheme claims

HM Revenue & Customs (HMRC) is sending letters to large businesses to confirm the validity of their claims under the job retention scheme (JRS)—a program established to provide economic relief to businesses as they support employees with payments as a response to the coronavirus (COVID-19) pandemic.

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HMRC intends to write to all large businesses that participated in the JRS program, asking them to review their claims. The letters are being sent beginning this week (14 September 2020), with recipients being asked to confirm that their claims are correct or disclose any errors. Depending on the employer’s response, there may be specific interventions from HMRC’s Large Business specialists.

The JRS confirmation initiative follows HMRC’s specific targeting of approximately 30,000 other JRS claimants, prompting them to review their claims when discrepancies with “Real Time Information” records or other information received by HMRC indicate potential issues. HMRC is also expected to launch an online service for employers to disclose historical errors that cannot be corrected by being offset against subsequent JRS claims. 


KPMG observation

Detailed practical guidance on preparing for a review is set out in KPMG’s JRS audit roadmap. Large businesses need to move quickly to confirm whether:

  • All key judgements made in relation to claims are documented and supported by HMRC’s guidance
  • The source data was robust
  • Calculations that support the submitted claims are accurate

Where anomalies are identified in historical claims, businesses will want to consider these and investigate thoroughly before responding to the HMRC’s letter.
 

Read a September 2020 report prepared by the KPMG member firm in the UK

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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