Errors in CJRS claims could lead to large bills later

Small and medium-sized enterprises accidentally overclaiming for National Insurance contributions they do not pay could have to repay thousands of pounds to HMRC later according UHY Hacker Young.

The firm says it has seen many small business applications for the coronavirus job retention scheme that include the cost of their employer’s National Insurance contributions for furloughed employees. However for many SMEs the government is covering that cost.

Under the employment allowance businesses that pay less than £100 000 in National Insurance each year can apply for up to £4 000 of tax relief on that bill. Many micro-businesses use this relief to reduce their National Insurance bills to nil.

HMRC is currently paying furlough scheme claims to businesses as quickly as possible – but UHY Hacker Young says that those who overclaim by mistake will have to pay that money back to HMRC later. This is...