CJRS guidance on underpayments updated

There has been an update to the CJRS guidance on what employers should do if they have underpaid employees through the scheme. Essentially there are two options – either top up the employees’ wages or pay the money back to HMRC.

If you decide to top up your employees’ wages, this must be done within a ‘reasonable period’. This period is usually no later than:

• 31 January 2022 for payments received in the 2020 to 2021 tax year, for customers who file an Income Tax Self-Assessment return
• 31 January 2023 for payments received in the 2021 to 2022 tax year, for customers who file an Income Tax Self-Assessment return
• 12 months after the end of the relevant accounting period if you file a Company Tax return.