Many employers have had difficulty reconciling and reporting their coronavirus support payments. HMRC is also having difficulties and 'nudge' letters are being issuedwhere they cannot reconcile Coronavirus Job Retention Scheme (CJRS) payments paid with those declared on the Corporate Tax returns. These letters require a response within 30 days.

Your response to a letter will either lead you to:

  • File an amended return is filed including any grant income which may have been missed, or
  • Confirm that the correct grant income has been included in the return.

HMRC may also request that sufficient information be provided to demonstrate that the correct amounts are being included and taxed in the return.

Our guides can help you declare these grants correctly.

See our guide: COVID-19: Taxation of Coronavirus support payments

Useful guides on this topic

COVID-19: Taxation of Coronavirus support payments
This guide summarises the tax treatment of grants paid during the Coronavirus pandemic.

Companies: CJRS payments require accruals and cash accounting
HMRC have updated their CT600 guidance to cover the declaration requirements for Coronavirus Job Retention Scheme (CJRS) payments for companies and advised that this will require tracking on both the accruals and cash basis.

COVID-19: Coronavirus Job Retention Scheme (CJRS) to 31 October 2020
Coronavirus Job Retention Scheme (CJRS): a cash grant payable to employers up to 31 March 2021.

COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020
What is CJRS? When does the CJRS apply? How to claim CJRS. How to calculate CJRS claim amounts.

External Links

CT600 guide

 


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