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Pendragon comments – The Treasury Select Committee on CJRS – 08.04.20

December 17, 2020

CJRS update Jim Harra, First Permanent Secretary & Chief Executive HMRC

Most employers will use the scheme responsibly and correctly, but there are broad risks of abuse by criminals and companies that will try to defraud the systems. HMRC stated that any scheme where money is distributed by the government is open to abuse.There are 4 key lines of protection HMRC have applied to CJRS

  1. policy design, claims only apply to employees which were on payroll on the 28th of February
  2. company PAYE authentication credentials to make a claim
  3. workers reporting their employers if they are aware of fraud or abuse to contact the hotline
  4. HMRC to undertake audit checks on all businesses which make a claim and to undertake further compliance checks to ensure that no employees that are claimed for have been working for the company whilst furloughed

There is an appreciation that some people will fall the wrong side of the qualifying date but there will be No Change to the qualifying date of 28th of February impacting those who left their employers after that date and now find themselves between jobs. There are other support options available to those workers just not CJRSPoints to Note

  • Furlough does not apply to workers on reduced hours
  • If the furlough is broken and the worker recalled to conduct services for the business, they must be removed from furlough and paid their full wage
  • Further details will be provided on the calculation for workers who have been on maternity leave, who are then put on furlough
  • Testing of the new system is happening today with external businesses and details will be issued on how employers can get ready to apply for the scheme which will include what information you will need in preparation

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