Time to review your CJRS Process
HMRC are cracking down on fraudulent or error-based claims for the Government’s Coronavirus Job Retention Scheme (CJRS). To assess your risk and get assurance that your firm’s claim processes are accurate, we have developed a CJRS Process Risk Review Tool.
Background on the CJRS
As people-led businesses, firms across the professional services industry have widely used the Government’s Coronavirus Job Retention Scheme (CJRS), the UK government's flagship support measure for organisations during the COVID-19 pandemic. It offers grants to cover a proportion of the salaries of furloughed staff.
Typically people costs account for around 40% of the cost base for professional services firms and utilisation of the furlough scheme was driven by a focus on implementing measures that seek to retain people while reducing costs. Other measures we have seen widely deployed are the deferral of pay rises and cutting hours, ultimately to protect future jobs.
The furlough scheme was implemented in a very short timeframe, and the mechanism for claiming a CJRS grant was and is very complex. Understandably many businesses focused on cash flow and securing a grant rather than the detail of their claim. As the furlough scheme is coming to an end in October, HMRC is now starting to focus on the detail and review claims to ensure they were accurate. It has also introduced a penalty regime that will apply where corrections to a claim have not been made in the allowable time frame (the later of 90 days from the claim or 20 October 2020).
Read our CJRS hub for all the information you need.
Assessing your risk
Your firm may now want to consider whether the process used to make claims is accurate – the devil is in the detail.
Alongside our CJRS calculator to assist with your CJRS calculations, BDO has created the CJRS Process Risk Review Tool. Our tool is designed to understand your exposure to risk; considering aspects such as:
- payroll frequency;
- how pay is calculated;
- types of pay (salary, overtime, variable pay, allowances);
- types of discretionary income;
- salary sacrifice arrangements;
- types of employees;
- sickness absence;
- part month claims, and;
- flexi-furlough claims.
It will produce a risk analysis report so you can decide whether any further action is required or alternatively give you the peace of mind that your claim was correct.
If this tool could help your business, get in touch.