Important deadlines and the clawback of Coronavirus Support Payments

Last week, the Government threatened to take criminal action against anyone who is suspected of making fraudulent or dishonest claims under its furlough scheme.

In order to tackle this issue, The Finance Act 2020 includes a number of provisions to empower HMRC to recover Coronavirus Support Payments (CSPs) that have been wrongly claimed. These include subjecting the amount of excess support payment to a special tax rate of 100%.

There is already a process in place for the correction of overclaimed CJRS by either reporting to HMRC and correcting by reducing the amount of the next CJRS claim, or by making a standalone repayment to correct an error. The deadline for reporting over-claimed amounts  in order to avoid penalties being charged is the later of 20 October 2020, or 90 days from receipt of the payment.

As HMRC is now commencing its post-payment investigations following a growing number of tip-offs, it is important that businesses check their CSP claims and notify HMRC of any necessary corrections ahead of the deadlines.

Should you require assistance around the Coronavirus Job Retention Scheme and furlough, please contact support@garbutt-elliott.co.uk and we will be happy to help.