The calculation of Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules. As a result, many errors have arisen. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not entitled to receive the furlough grants, with a penalty for failure to notify them.
HMRC has said that it will be lenient in relation to genuine mistakes, but penalties will be charged in cases of deliberate non-compliance.
HMRC also have the power to transfer CJRS penalties to the directors of an insolvent company if their company does not pay them. We therefore suggest that you do check the accuracy and validity of all CRJS claims and ensure that any inaccuracies are disclosed to HMRC as quickly as possible. We can of course assist you in checking claims.