CJRS boxes CT600

How to complete the CJRS boxes on the CT600 in the second year

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Good afternoon

Hopefully, given the pigs ear of guidance given for their completion, someone is in a similar position and has a view on how to proceed.

It wasn't until the third update of the CT600 guide in November 2021 that HMRC made it clear that they were looking for box 471 to be completed using the cash basis - CJRS actually received during the accounting period and not that claimed and due for the accounting period.

Guidance at the time was that they didn't expect any amendments if there were 'no coronavirus support schemes overpayment remaining due for payment'.

We have a few clients where the returns were completed prior to November and reported the CJRS using the accruals basis - so the claims made for the accounting period whether they had received payment before the year end or not.

Now we are looking to complete the CT600 for the following period and am unsure how to proceed; we could amend the original return to complete the boxes using the cash basis, we could complete the boxes on the accruals basis so the overall amount reported between the two agrees with CJRS payments received or we can complete on the cash basis - meaning the total reported will be greater than the amount received.

For either of the second two options we would attach a reconciliation so that HMRC can see what has happened.

Any thoughts would be gratefully received.

Replies (2)

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By Paul Crowley
15th Jun 2022 14:46

This really is a no win either way.
I would look to be consistent.
Easy for me to say, but we deliberately did not accrue for CJRS, even though we were all told to accrue for the automatic £10,000 Council grant before receipt

At least the advice was clear for SEISS

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By rmillaree
15th Jun 2022 14:49

I probably wouldnt give it a seconds thought if you have submitted using another conssitent method. We had done the same and have had no flags raised - i would like to think where amounts are out by one month they would not be raising the issue.

If they do start raising enquires for these clients with timing issues only they will toot sweet realise they are wasting both our time and our clients time.

Note i also wouldnt worry if the totals are inconsistent ie second one is right first one is wrong - however personally i will be preparing the current years ct600's so they remove any amounts added onto the prior year ct600- i would rather its clear that its timing issue (to anyone loking at both returns) rather than have a return that may be technically correct this period and wrong last period (not amended)

Thanks (2)