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When is CJRS - JRSA taxable?

When payments are received or against the period for which they are claimed?

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I have not been able to find an answer online, so suppose that 'accounting principles' will come to bear.

Employers pay out the wages, then get a refund a little later from HMRC - that means that payroll costs will definitely belong to one accounting period, but the refund may arrive in the next. Should we provide for the money that is expected in, or is JRSA taxed on a Receipts basis?

I am conscious that we are not to net the JRSA off against salaries but must show it as a separate item of income. It makes me suppose that HMRC may use 'Big Data' to select cases for enquiry, so would want to stick to the rules as closely as possible.

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By SXGuy
14th Jun 2021 17:03

Well, if I were to say to you that the timings for claiming were intended to be prior to a payment date and if possible early enough to receive cjrs before a payment to an employee is made, would that change how your looking at it?

In other words the fact the payment arrives after the employer has paid staff is irrelevant.

And on that basis I would treat the cjrs as being recorded at the point of claim, not at the point of receipt.

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By lionofludesch
14th Jun 2021 17:57

Accruals basis.

Because, unlike SEISS, it's part of the accounts.

Unless you're doing Crazy Cash Accounting, obviously.

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By Duggimon
15th Jun 2021 09:31

While netting off is obviously wrong, the matching principle still applies and the CJRS grant income should appear in the same period as the salaries to which it relates.

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