There has been an update to the CJRS guidance on what employers should do if they have underpaid employees through the scheme. Essentially there are two options – either top up the employees’ wages or pay the money back to HMRC.

If you decide to top up your employees’ wages, this must be done within a ‘reasonable period’. This period is usually no later than:

• 31 January 2022 for payments received in the 2020 to 2021 tax year, for customers who file an Income Tax Self-Assessment return
• 31 January 2023 for payments received in the 2021 to 2022 tax year, for customers who file an Income Tax Self-Assessment return
• 12 months after the end of the relevant accounting period if you file a Company Tax return.