Furlough Fraud: Further Guidance From The Government
Useful information now CJRS has been extended ...
Posted by Roger Eddowes on 23/11/2020 @ 8:00AM
As the Government announced it as extending the Coronavirus Job Retention Scheme (CJSR), it has also released further guidance on furlough fraud and the penalties that may be due if you do not notify HMRC of any overpayment of grants ...
With CJRS being extended, the Government has released further guidance on furlough fraud!
copyright: elnur / 123rf
Furlough fraud can happen in a number of ways. It's mostly about an employer claiming money it was not entitled to, or a change in the employee roster that wasn't accounted for during a CJRS claim.
"Notify HMRC within 90-days of the overclaim
and no penalties are due!"
The penalties are there for what HMRC considers deliberate behaviour although non-notification of non-deliberate overclaims will also incur a penalty if the employer does not notify HMRC in time.
For non-deliberate, unprompted behaviours:
HMRC is notified within 12 months of tax being due = 0% to 30% of the 'potential lost revenue' (PLR – the amount that is unpaid as a result failing to notify)
HMRC is notified 12 months or more after-tax was due = 10% to 30% of the PLR
For non-deliberate, prompted behaviours:
For deliberate behaviours:
For deliberate and concealed behaviours:
The Government emphasises that overclaimed grants must be repaid and this can be done during the next furlough claim or by making a repayment to HMRC directly.
By repaying during the next claim, HMRC will deduct that amount of the overclaim from the current claim payment. You should keep a detailed record of any CJRS claims for the next six years to prove any enquiries from HMRC regarding furlough fraud issues.
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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