The Coronavirus Job Retention Scheme (CJRS), also known as furlough, was a UK government initiative that helped pay the wages of employees who were unable to work due to the COVID-19 pandemic. The scheme was in operation from March 2020 to September 2021.

What is CEWS?

CEWS was a taxable grant that was paid to employers to cover 80% of the wages of furloughed employees. The grant was capped at £2,500 per month per employee.

Where to Report CEWS on T2

If you received CEWS payments during the pandemic, you are required to report them on your Corporation Tax return. You can do this by completing the Coronavirus Job Retention Scheme section of the T2 form.

The Coronavirus Job Retention Scheme section of the T2 form is located on page 2 of the form. You will need to enter the following information:

• The total amount of CEWS payments you received
• The number of employees who were furloughed
• The total amount of wages that were paid to furloughed employees
• The total amount of employer National Insurance contributions (NICs) that were paid on furloughed employees' wages

Deadlines for Reporting CEWS on T2

The deadline for filing your Corporation Tax return is 12 months after the end of your accounting period. If your accounting period ended on 31 March 2023, your Corporation Tax return must be filed by 31 March 2024.

Penalties for Not Reporting CEWS on T2

If you fail to report CEWS payments on your Corporation Tax return, you may be charged a penalty. The penalty is calculated as a percentage of the total amount of CEWS payments that you received.

How to Get Help Reporting CEWS on T2

If you need help reporting CEWS payments on your Corporation Tax return, you can contact HMRC. HMRC has a dedicated helpline for businesses that have received CEWS payments.

Conclusion

If you received CEWS payments during the pandemic, you are required to report them on your Corporation Tax return. You can do this by completing the Coronavirus Job Retention Scheme section of the T2 form. The deadline for filing your Corporation Tax return is 12 months after the end of your accounting period. If you fail to report CEWS payments on your Corporation Tax return, you may be charged a penalty.

Frequently Asked Questions

• What is the Coronavirus Job Retention Scheme?

The Coronavirus Job Retention Scheme was a UK government initiative that helped pay the wages of employees who were unable to work due to the COVID-19 pandemic.

• What is CEWS?

CEWS was a taxable grant that was paid to employers to cover 80% of the wages of furloughed employees.

• Where do I report CEWS on my Corporation Tax return?

You can report CEWS payments on your Corporation Tax return by completing the Coronavirus Job Retention Scheme section of the T2 form.

• What is the deadline for filing my Corporation Tax return?

The deadline for filing your Corporation Tax return is 12 months after the end of your accounting period.

• What are the penalties for not reporting CEWS on my Corporation Tax return?

If you fail to report CEWS payments on your Corporation Tax return, you may be charged a penalty. The penalty is calculated as a percentage of the total amount of CEWS payments that you received