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BOSS Today #53 DOWN TO BUSINESS

COUNTING

THE COST

As the legislation GOVERNING THE CORONAVIRUS Job Retention Scheme (CJRS)
was new and complex, it is likely that many employers will have made
innocent mistakes when calculating and submitting their claims

n light of the Government’s efforts to businesses first submitted a CJRS claim
Ifight furlough fraud, UK employers that to confirm compliance. These checks
have claimed grants during the pandemic are there to make sure that businesses
should make sure they can show their have met the conditions for receiving
claims were made properly. the grants and have claimed the correct
The CJRS began in March 2020 and amounts.
was a lifeline to many businesses. The
speed of the impact of the pandemic During an inspection on CJRS procedures,
required an immediate response, which HMRC are likely to expect to see evidence
resulted in the HMRC issuing funds such as:
through the CJRS with the confirmation
that compliance checks would be carried n Amounts paid and claimed in respect
out in the future. of each furloughed worker
As the legislation governing CJRS was n Communications with
new and complex, it is likely that many employees notifying them they were
employers will have made innocent However, employers can correct any being furloughed and obtaining their
mistakes when calculating and submitting mistake made without a penalty if they agreement in their terms and
their claims, particularly at the start notify HMRC and repay the money within conditions of employment
of the pandemic when the rules of the the deadlines put in place. n Calculations of claims for furloughed
scheme were rapidly evolving. Other The Government is also taking several workers
reasons for innocent errors may have steps to hinder CJRS fraud, including n Procedures in place to bring back
included accidentally making a claim in publishing details of claims made since furloughed workers.
relation to an employee who was not December 2020 and allowing employees
eligible, administrative errors, or even to view in their personal tax accounts Although the CJRS ceased at the end of
not being able to keep up with the many claims made for them in the same period. September 2021, HMRC’s checks will
changes in the rules since the scheme was Where businesses have falsely claimed for increase to ensure that all employers have
introduced. In addition, there have been an employee who has continued to work, complied. Employers should be checking
reports of employees who have tried to employees can notify HMRC of their to ensure that claims under CJRS are
be ‘helpful’ and carried out work, even employer’s wrongdoing. accurate and that detailed evidence is
when instructed not to, without their In March 2021, Chancellor Rishi Sunak retained to prove eligibility. HMRC require
employer’s knowledge. announced the launch of a Covid fraud employers to keep all CJRS furlough
HMRC previously said it had identified team within HMRC. This is responsible records for six years.
around 27,000 high-risk claims, which for carrying out the compliance checks
are likely to have been identified through promised last year, and these are now For further information, please
HMRC’s own risk analysis using RTI data, under way. Through these checks, contact your regional HR
together with the substantial number of HMRC is requesting a vast amount of Adviser. Details can be found at
calls made to its CJRS Fraud Hotline. information that will date back to when www.bossfederation.com/HRAdviser

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