HMRC are now actively pursuing incorrect and fraudulent grant claims made under the coronavirus job retention scheme (CJRS) for wages of furloughed employees.

There are four common causes of incorrect CJRS claims:

• the employer used the wrong reference pay to calculate the claim;
• the amount claimed was not paid in full to the employee;
• the employee performed tasks related to their employment while furloughed; or
• the employee was not on the payroll in the furlough period.

The CJRS closed on 30 September but it is still possible to correct any overclaims by repaying the amount to HMRC. You need to get a reference number from the online CJRS portal and use this reference when repaying the sum to HRMC. We can help you with the calculations.

Beware that where you are repaying funds from the CJRS which you have held on to for more than 90 days you may also have to pay a penalty.

If you think that an employer has claimed for fictitious employees, or for employees who were working and not furloughed, you can report your concerns on the Covid-19 fraud line: 0800 5875030.

Where the company has already been wound-up or dissolved or is in receivership or liquidation, HMRC will not give up chasing for any overpaid CJRS grants. It will attempt to collect those funds from the directors, shadow directors and certain other individuals connected to the business. HMRC will issue a notice to make the individuals jointly and severally liable for amounts the company owes so that it can pursue the amounts owed from the company or from the individuals.

If you have any concerns in this area, please get in touch and we will try to work together to resolve any issues.