Pension age set to rise

Pension age set to rise

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

A glitch in HMRC’s CJRS calculator means employers may need to recalculate furlough claims made for January 2021.

HMRC discovered a mistake in its CJRS calculator just days before the 15 February deadline for CJRS claims for January. It says the error could lead to claims being overstated or understated.

HMRC said: “We’re afraid our CJRS calculator on GOV.UK contained a software error, which we have now corrected.”

All of which means employers may need to recalculate their CJRS claims if they used the calculator before 21 January and all of the following applied:

  • The claim contained employees who are not on a fixed salary.
  • The employer used an employee’s pay for January 2019 as reference pay, instead of 2020.
  • The employee’s pay was different in January 2019 to January 2020.

Where the employer used their employee’s January 2020 pay in the CJRS calculation, no correction is required.

Where the revised CJRS claim produces a different figure to the claim already submitted for January 2021, the employer needs to:

  • Where the claim was too high, this should be corrected in the next CJRS claim submitted, or alternatively the employer can make an online repayment to HMRC.
  • Where the claim was insufficient, the employer should call the HMRC helpline by 1 March to amend this.

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