Notify HMRC of overclaimed CJRS “furlough” grants within 90 days

The calculation of the furlough Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not entitled to receive the furlough grants and there is a penalty for failure to notify them.

HMRC has said that it will be lenient in relation to genuine mistakes, and that penalties will be charged only in cases of deliberate non-compliance.

NUMEROUS FRAUDULENT CJRS CLAIMS IDENTIFIED

HMRC’s CJRS fraud reporting portal had received over 2,000 reports of wrongful claims.

Examples of such wrongful claims include;

  • Claiming furlough payments for staff who are continuing to work
  • Furloughing staff but asking them to work “voluntarily” on an unpaid basis.
  • Claiming furlough payments for “ghost” employees, and those who left employment before 19 March 2020.
  • Not passing on the full amount of furlough pay to staff.
  • Failing to account for PAYE tax and NIC in relation to furlough payments

HMRC also have the power to transfer CJRS penalties to the directors of an insolvent company if their company does not pay them.  We therefore suggest that employers should check the accuracy and validity of their CRJS claims as a matter of priority, and ensure that any inaccuracies or errors are disclosed to HMRC as quickly as possible. We can of course assist you in checking claims.

Need more information?

We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

Contact us below

Fields marked with an * are required





    Write a Comment

    Your email address will not be published. Required fields are marked *