Job Retention Scheme – Note to Clients

As you may already know, the Job Retention Scheme starts 20 April, 2020.

Please ensure you correctly document and evidence any claims that you may make for the Coronavirus Job Retention Scheme (JRS) grants in respect of your furloughed employees if you wish to avoid any future audit challenges from HMRC in respect of these claims. Once the post-lockdown confusion subsides, HMRC may target businesses to investigate JRS fraud via tax enquiries and reviews. 

It is essential that you prepare and retain the following:

– a thoroughly documented assessment that clearly shows the effect of the virus and subsequent lockdown on the business plus dates.

– How the above justifies the furloughing of staff and the number of staff furloughed.

– Clear calculations that support the amounts you are claiming under the scheme.

– Letters/correspondence between you and the employees that support the furloughing arrangements. Note that you should also document their responses to the agreement. (Ensure the letter sent specifies if the employee(s) can take on other jobs (from other employers) during the period.

Businesses that are reviewed and fail to provide documented evidence and progress of claims may be asked to refund the grants in full plus interests and penalties.

Please get in touch if I can be of any help. We’re all in this together.

In the meantime, please keep on keeping safe.