CHAMBER NEWS


New scheme to kickstart young people into work


East Midlands Chamber is teaming up with local authorities and other organisations across the region to get young people into work via the Kickstart scheme – already facilitating more than 1,000 work placements. The Chamber has signed up 320


businesses that want to take advantage of the Government programme, which will cover the cost of a six-month placement for 16 to 24-year-olds who are on Universal Credit or at risk of long- term unemployment. Employers that want to create at


least 30 placements can apply directly to the Department for Work and Pensions (DWP) for a grant to cover the costs, but


companies with fewer than 30 roles must apply via recognised gateway organisations, such as the Chamber. To engage more businesses to


create job opportunities for young people in their communities, and benefit from the additional resources offered by work placement students, the Chamber has collaborated with local authorities such as Melton Borough Council to hold online information sessions. Diane Beresford (pictured), deputy


chief executive of the Chamber, said: “We know young people have been disproportionately affected by the pandemic and the huge amount of unemployment it has created, so the Kickstart scheme is an important mechanism for helping them to get


the skills they need to prepare for the world of work. “We’re now speaking to


individual local authorities to either work in partnership when it comes to applying on behalf of their businesses, or to hold information sessions, as we want to make sure as many companies as possible take advantage of these opportunities.” Acting on behalf of employers,


the Chamber applies to the DWP for funding, which pays 100% of the age-relevant National Minimum Wage, national insurance and pension contributions for 25 hours a week. Employers can choose to top up this wage and are also eligible for a


£1,500 Government grant for training people on a Kickstart placement. Applications began on 1 November and can be made until December 2021 initially, with young people referred into the roles via a Jobcentre Plus work coach.


For more information on how the Chamber can help facilitate a Kickstart grant, email kickstart@emc-dnl.co.uk


How to avoid getting a call from HMRC for a fraudulent furlough claim


Since 22 July, HMRC has been the statutory authority charged with clawing back any non- entitled payments made to employers via the Coronavirus Job Retention Scheme and other Covid-19 financial support payments. Steve Charles, who supports Chamber members with business advice at Quest, explains what this means for companies.


HMRC will target recipients that claimed fraudulently and in cases where the claim was made by an honest error. The UK Finance Act 20 allows it to bring both criminal and civil proceedings. Insolvent company directors and officers could be liable to personal action against them. Employers can avoid penalties by undertaking proactive steps to correct their errant claim.


HOW TO NOTIFY HMRC OF AN INCORRECT CLAIM Upon discovering the error, whether it be an over payment or non- entitlement to a payment, the employer must take active steps to inform HMRC. There are two ways to do this. If the error is discovered immediately, the


employer can use the online HMRC service to cancel the claim within 72 hours. If an error is discovered later, the employer can amend the next claim submitted. It may also repay HMRC.


INCORRECT CLAIMS Where an organisation makes a claim for the Coronavirus Job Retention Scheme that it’s not entitled to, HMRC will, to the extent of the unpaid amount, charge income tax equivalent to 100% of the amount of the payment. Employers, which are responsible to inform HMRC of any incorrect


claims, will have to make the payment regardless of fault. When HMRC has assessed an employer and it is found liable to pay the


money back, the payment must be paid within 30 days after the assessment date. After this period, interest and penalties may be incurred by the employer.


32 business network November 2020


WHAT IF HMRC DOESN’T COME FOR YOU? Where HMRC does not carry out an assessment, the employer is obliged to state any incorrect payments in their income tax or corporation tax return. It must inform HMRC of the error within 90 days, commencing from the


date the grant was obtained. For companies that have made honest mistakes revealed outside the 90-


day period, HMRC has stated penalties will not imposed if any income tax liability is resolved within 12 months from the end of the relevant period.


PENALTIES FOR UNRESOLVED ERRANT CLAIMS HMRC will assess the penalties based on the employer’s conduct. Those that have falsely claimed can face a 100% penalty and be named and shamed by HMRC. Placing a company into insolvency will not protect a director, officer or manager of a company, as the new law will allow HMRC to hold them jointly and severally liable. But employers should now, as a matter of urgency, conduct an internal


accounts audit to ensure they correct any mistakes within the 90-day period of grace. Quick action can avoid unnecessary penalties being imposed.


Did you know about Quest


and ChamberHR? All Chamber members benefit from free access to the Quest service, which offers support for HR, health and safety, legal and tax issues. Members can access our Information and


Knowledge Hub at www.chamberhr.co.uk and have unlimited 365-day access to experienced tax and VAT specialists via our advice line by calling 01455 852037. From a tax perspective, the service also includes insurance cover to


deal with a full HMRC enquiry, aspect enquiries, and PAYE and VAT disputes.


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