CJRS Guidance updated for offsetting overclaimed amounts

14 October 2021


HMRC have updated their Coronavirus Job Retention Scheme (CJRS) guidance to explain what employers should do in the case where they have overclaimed an amount for an employee and wish to offset the amount against an amount underclaimed.

The guidance confirms the following:

  • When working out the amount overclaimed in a claim period, employers can include all employees in that single claim period.
  • This means that where an employer has overclaimed for one employee, this amount can be offset by an amount equal to any amounts that have been underclaimed for another employee included in the same claim period.
  • An overclaim made in one claim period cannot be offset against an underclaim from another claim period.
  • Where a business has underclaimed for any employee, they must make that value ‘good to the employee’. This is because it is a requirement of the CJRS that the employee receives a minimum of 80% of reference pay.
  • Any balancing overclaim after offsets for any period must be repaid to HMRC.

HMRC have offered the following example;

  • A Ltd claimed £4,000 for 1 June 2021 to 30 June 2021. This comprised of £2,000 for Employee 1 and £2,000 for Employee 2.
  • A Ltd reviewed the claim after the amendment deadline and identified that Employee 1 should have received £2,500 and Employee 2 should have received £1,500.
  • The £500 overclaim for Employee 1 can be offset against the £500 underclaim for Employee 2. This means A Ltd does not have an overclaim for the period from 1 June 2021 to 30 June 2021 as long as they pay Employee 1 the additional £500 they should have received in respect of that period.


Aspire Comment:

We are aware of CJRS claims being scrutinised by HMRC as part of current investigations.  If this is you, call Aspire to learn how we can manage the enquiry on your behalf.  Alternatively, we can review your current practices in relation to all aspects of a PAYE or CJRS investigation before you get that knock at the door.  Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.