Conditions for coronavirus job support scheme not met

The company supplied furniture to high street bars etc and was severely affected by the outbreak of Covid-19. It engaged two new employees in Mid Feb 2020. They commenced work on 24 February. The company’s payroll was run on 26th of the month with a cut off of 21st of the month and so the individuals joined too late in the month to be included in the payroll run for February. They were paid in March with the relevant real-time information (RTI) report being made on 25 March.

The company claimed under the coronavirus job retention scheme (CJRS) for these two employees from 1 April 2020 (the start of the scheme) until they were made redundant in October 2020. HMRC made a check of the company’s claim and rejected the claim in respect of these two employees. This is because it was a condition of the first and...