Since the outbreak of coronavirus in the UK, many UK businesses have been taking advantage of the government’s financial support, particularly when it comes to the Coronavirus Job Retention Scheme (furlough scheme).
With large amounts of financial support offered it is no surprise that HMRC will be checking to make sure that all applications and money claimed are genuine and not fraudulent. If you have over-claimed for whatever reason then it is important that you inform HMRC and repay as soon as possible,
The Institute of Chartered Accountants in England and Wales (ICAEW) recently advised that taxpayers have 90 days to notify HMRC of overclaimed coronavirus (COVID-19) grants.
This 90-day period to inform HMRC is law in accordance with the Finance Act 2020 which confirms the taxability of the Coronavirus Job Retention Scheme (CJRS), as well as the Coronavirus Statutory Sick Pay Rebate Scheme and COVID-19 business support grants.
The Finance Act 2020 gives HMRC the power to recover grant payments if a recipient is not entitled to them, as well as the ability to charge penalties.
Therefore it is going to be the responsibility of the business to notify HMRC if they have over-claimed COVID-19 grants. In order to comply with these regulations any taxpayer who has over-claimed and not repaid need to notify HMRC by the latest of:
It’s no surprise that there will be penalties inflicted if anyone flaunts the rules which in this case is where a person knew they were not entitled to payment but still claimed. The penalty imposed will be 100% of the amount improperly claimed.
But businesses have been given some leniency in that there will be a small window where they will have the opportunity to come forward which will avoid further punishment.
At Gow & Partners, we pride ourselves on getting to know your business personally so that we can help you perform at your optimal level, while also assisting you in your growth and development.
It is our business to help your business flourish, and our services will always accommodate your changing needs. If you need any further help or assistance with making sure you repay any over-claimed COVID-19 grants then get in touch with the team at Gow & Partners here.