Legislation is currently being fast-tracked to allow HMRC to reclaim any furlough money overpaid to employers, or not spent on wages as intended.
There will be the initial investigations following reports of misconduct but soon after random compliance checks are anticipated.
These checks will probe for anyone who has ‘deliberately’ made an incorrect claim or ‘deliberately’ not utilised the money to pay furloughed employee costs.
Whilst there have been changes to Coronavirus Job Retention Scheme, what was clear from the outset was that if employers made us of this scheme, they could not allow any furloughed employee to do any work at all for them, and this remains the case until the new Flexible Furlough comes into operation on 1 July.
Now is the time to revisit any claims made and ensure you are happy that you have claimed correctly for each individual.
The draft legislation states that penalties will only apply if the employer fails to notify HMRC about the situation within 30 days, so time is of the essence.
The draft legislation gives HMRC powers to make company officers personally liable.