The coronavirus job retention scheme has been extended to 31 March 2021—but this is not simply a continuation of the old job retention scheme. Rather, there are certain important differences from the earlier versions of the job retention scheme, particularly around deadlines.
From 1 November 2020 until 31 January 2021, employers can again claim grants—capped at £2,500 per month for each employee—for an employee’s unworked hours based on 80% of the reference pay. The government stated it will review the scheme in January 2021, and employers might be required to contribute to a furloughed employee’s direct salary costs from the start of February 2021.
Throughout the extension, employers must bear the cost of employer’s NIC and pension contributions on payments made to furloughed employees. Read a November 2020 report prepared by the KPMG member firm in the UK
Job retention scheme claims due by 30 November
Job retention scheme claims for periods ended on or before 31 October 2020 are due, and any underclaims corrected, by 30 November 2020.
HM Revenue & Customs (HMRC) confirmed that regardless of the extension through March 2021, the deadline for submitting claims for periods that ended on or before 31 October 2020 remains as 30 November 2020.
Any underclaims for periods that ended on or before 31 October 2020 need to be identified and corrected by that deadline. Different time limits apply to correcting any overclaims. Unless repaid within 90 days of the date on which they arise, overclaims need to be notified to HMRC and then recovered through a special income tax charge on the employer.
Employers must on or before 30 November 2020:
Any overclaims for periods ended on or before 31 October 2020 (as well as any for subsequent claim periods) must be corrected or reported to HMRC within 90 days of the date on which they arose. Read a November 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.