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Furlough Scheme over-claims

Source: HM Revenue & Customs | | 09/06/2020

HMRC’s guidance makes it clear that any business that makes an error in making a Coronavirus Job Retention Scheme (CJRS) claim must pay back any amount over-claimed. Any claims based on inaccurate information can be recovered by HMRC.

The CJRS application claim form has been updated and now allows businesses to advise HMRC if they have identified previous errors and over-claimed. If you confirm that your business has been overpaid, the new claim amount will be reduced to reflect this overpayment.

HMRC has also clarified what will happen if you have made an error in a CJRS claim and do not plan to submit further claims. HMRC is working on a process that will allow employers to let HMRC know about these errors and pay back any amounts that have been over-claimed. HMRC will update their guidance when this option is available.

Employers must pay the full amount they are claiming to their employees, even if the company enters administration. If the employer is unable to pay employees what they are due, the monies will need to be repaid to HMRC. The same applies in relation to employer NICs and pension contributions.

It is important to ensure that all claims made for furloughed employees are accurate. Employers are required to keep full records relating to any CJRS claims (including adjustments) for a period of six years.

 

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McAllisters is a partnership trading from Paxton House, 11 Woodside Crescent, Glasgow providing accountancy and tax services and general business advice and is a member of ICAS (Registration No 0342) and an FCA exempt professional firm (No 301235). Its VAT number is 261 3019 94

McAllisters (Scotland) Ltd is a related business providing tax and business advisory services to McAllisters and its clients. McAllisters (Scotland) Ltd is registered in Scotland (Registration number SC146856). Its VAT number is 624 0564 62.

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