CJRS: have you got it right?
HM Revenue & Customs (HMRC) have started reviewing claims under the Coronavirus Job Retention Scheme (CJRS).
Whilst businesses that have been reported to HMRC’s whistleblowing line will be of particular interest, businesses posting strong financial performances whilst using the CJRS might also attract the attention of HMRC.
Given the sparse nature of initial guidance in relation to the CJRS, several Treasury Directions and the contradictions between those Directions and government guidance, employers might well be forgiven for making mistakes in claims.
"However, businesses only have less than 10 days to make sure claims that have been made are reviewed or amended, the deadline being 20 October."
Penalties that can be imposed by HMRC range from 15% to 50% of the claim value for any errors that are considered to be negligent. HMRC will also be able to recoup 100% of the claim value where claims are found to be fraudulent.
At a time when cash flow is tight and many business are under significant financial pressure, this will come as an unwelcome distraction. However, the consequence of getting it wrong might well outweigh the inconvenience of trawling through all that paperwork again…
Get in touch
If your business needs legal support with any issues arising from COVID-19, please get in touch with Hannah Morrow.
All information in this update is accurate at the time of writing. It is meant for general information only and is not legal advice.