HMRC’s Coronavirus Job Retention Scheme (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 has 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.