CJRS to be repaid: employees were not added to RTI

In Oral Healthcare Limited v HMRC [2023] TC8781, a company had to repay £35,739 after it failed to meet the conditions of the Coronavirus Job Retention Scheme. Employees were employed in March 2020 but were not added to PAYE RTI submissions until after the 19 March cut-off deadline.

• Oral Healthcare Limited (Oral) made claims under the Coronavirus Job Retention Scheme (CJRS).
• Following a compliance check which included the issue of Schedule 36 information notices, HMRC concluded that:
  • Employees included in the claim had not been included on a Real-Time Information (RTI) Full Payment Submission (FPS) prior to 19 March 2020 as required.
• Following an unsuccessful Statutory Review an assessment of £36,031 was issued.
• Oral Appealed to the FTT.

The FTT found that:

• The employees had not been included on an RTI FPS by the applicable date to validate a claim under the CJRS schemes.
• While the tribunal expressed sympathy, it was not enough that:
  • The employees had been employed prior to the relevant dates. Due to start dates before 19 March and a payroll run at the end of the month, they did not meet the criteria.
  • If technical problems running the month-end RTI submissions had not occurred, the submission would still not have been before the 19 March cut-off.
  • While allowing the appeal would be in the spirit of the CJRS scheme, the FTT had to apply the legislation as written.
• As the company was not eligible to receive CJRS for these employees the assessments were due and valid.

The appeal was dismissed.

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.

RTI: Real-Time Information for PAYE
What is RTI: Real-Time Information (RTI) reporting for PAYE? How does it work?

Sch 36 Information Notices
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued?

Sch 36 Information Notices: At a glance (freeview)
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued?

Statutory Review (by HMRC)
What is a Statutory Review? Is it automatic? What happens in a Statutory Review? Can you challenge a Statutory Review's findings? Can you influence a Statutory Review? 

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) to 30 September 2021
What is CJRS? When does the CJRS apply? How to claim CJRS. How to calculate CJRS claim amounts.

External links

Oral Healthcare Limited v HMRC [2023] TC8781