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CJRS claim correction on CT600 return

CJRS claim correction on CT600 return

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If a company reports a CJRS overclaim on its CT600 return, when does the CJRS repayment become payable. 

Is it simply lumped together with the CTax liability with the whole balance becoming payable on the usual due date, 9 months after end of accounting period  ?     


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By Hugo Fair
28th Sep 2021 20:14

"If you’ve overclaimed a grant and have not repaid it, you must notify HMRC by the latest of:
* 90 days after the date you received the grant you were not entitled to; or
* 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed.
If you do not do this, you may have to pay a penalty.

Reporting something within a CT600 does not in some way delay the date by which payment of a (non-CT) amount is due.

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By Paul Crowley
28th Sep 2021 20:42

The error needs to be sorted per Hugo
If not sorted a penalty could be justified

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By Tax Dragon
29th Sep 2021 09:51

Putting a bit of meat on Hugo's bones, there's an income tax (not a CT) charge under para8 Sch16 FA2020 in relation to overclaimed CJRS, including the case where the company ceases to be entitled to retain the CJRS payment after it was received because of a change in circumstances or because the company had not, within a reasonable period, used the payment to pay the costs which it was intended to reimburse. The income tax is chargeable at the time the company ceases to be entitled to retain the amount (para8(4)) - being when the payment is received if there was never an entitlement. Para12 deals with the notification requirement - and this is where Hugo's 90 days comes in.

Every accountant in the land really ought to read Sch16 - at least three times, if, like me, you're slow to learn (I have to read things five times).

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