Paying Coronavirus Job Retention Scheme grants back

The Coronavirus Job Retention Scheme has involved complex calculations for many employers, particularly where variable pay is involved and so it is possible that mistakes will have been made.  If you have made an error in a claim which you discover after submitting it that has resulted in an overclaimed amount, you must pay this back and there are now two possible ways to do this.

If you are making another claim for a subsequent period then you can tell HMRC about an overclaimed amount as part of the process of making your next claim.  When you make your next claim you will be asked whether you need to reduce the amount to take account of a previous overclaim and then you are asked to subtract the overpaid amount from your current claim.  You should keep a record of this adjustment for 6 years.

However, if you have overclaimed and you do not plan to submit any further claims HMRC have now issued guidance on what to do next.  You should contact HMRC and let them know about your error. To do so you will need your 14 or 15 digit reference number that begins with X.  Once you have contacted them you will be given a payment reference number and directed to make a payment online using telephone banking, CHAPS or Bacs.

As a reminder you have made an error that has resulted in an underclaimed amount, you should contact HMRC to amend your claim. HMRC advisers will conduct additional checks when you do this as you are increasing your claim amount.

Full details of how to adjust your claim can be found using the following link https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

The Mercer & Hole team are here to support you and your business.