Now that the furlough scheme has ended, HMRC has begun to actively pursue incorrect and fraudulent grant claims made under the Coronavirus Job Retention Scheme (CJRS) for the wages of furloughed employees. Currently, there are four main causes of an incorrect claim, which are:

  • The employer used the wrong reference pay to calculate the claim;
  • The amount claimed was not paid in full to the employee;
  • The employee performed tasks related to their employment while furloughed;
  • The employee was not on the payroll in the furlough period.

How To Repay Funds To HMRC

On the 30th of September, the CJRS officially closed; however, it is still possible to correct any over-claims by repaying the amount owed to HMRC. If you are repaying a sum, you will need to get your reference number from the online CJRS portal and use this when making your payment. Keep in mind that if you are repaying funds that you have held onto for more than 90 days, you may also need to pay the penalty.

Our team are able to help you with these calculations, so feel free to contact us to arrange a meeting.

Dealing With Fraudulent Grant Claims

If you believe that an employer has claimed for fictitious employees or employees who were working and not furloughed, you can report your concerns to the COVID-19 fraud line on 0800 5875030.

In the instance whereby the company has already been dissolved, is in liquidation or receivership, HMRC will continue to chase any overpaid CJRS grants. It will attempt to collect these funds from directors, shadow directors and other individuals connected to the business. A notice will be issued to make these individuals jointly and severally liable for the amount the company owes.

Again, if you have any concerns, please get in touch, and we will try to work together to resolve any issues.