• Register
Return to: Home > Comments > Employers offered more time to come clean on furlough errors

Employers offered more time to come clean on furlough errors

On the proposed amendments to the Finance Bill on how HMRC proposes to deal with employers who have made errors relating to COVID-19 support payment claims, Dawn Register, Tax Partner at BDO comments

“The window of opportunity to correct mistakes in furlough claims or other COVID-19 support payments administered by HMRC is to be extended from 30 to 90 days. This is a welcome change that gives businesses a more realistic time period to check their claims and notify HMRC of any corrections. Given the huge volume of government guidance and changes in July already, we consider the extension to a 3 month period is crucial to allow businesses time to review claims and seek professional advice where necessary.

“The legislation will now also cover the new Coronavirus Statutory Sick Pay scheme, in addition to the furlough (CJRS) scheme, the SEISS and other Covid-19 grant schemes.

“If a company received ‘furlough monies’ which it was not entitled to then it will be subject to 100% income tax on those monies.  The legislation now confirms that this tax is not payable under Quarterly Instalment Payments (QIPS), which is also a helpful clarification for larger companies.

“We expect there will be many cases where innocent mistakes are made given the difficult trading conditions for businesses during Lockdown.  Also a ‘catch up’ exercise may be needed on paperwork.  Businesses should start to check and double check now that their Government support claims are correct.

“We know HMRC is receiving whistle-blower reports where abuse of COVID-19 support is suspected.  We expect HMRC enquiries and serious investigations will follow the 90 day correction window for those who fail to rectify any incorrect claims.

“The 90 day period will start after Royal Assent of the Finance Bill and this is expected before the end of July 2020.”

The latest Government figures show that to the 21st June, 1.1m employers have received £22.9bn under the Coronavirus Job Retention or ‘furlough’ Scheme. Meanwhile, £7.6bn has been paid out to 2.6m self-employed businesses under the Self-Employment Income Support Scheme.

 

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.