HMRC Increase Investigation into Fraudulent Job Retention Claims.

Business employers who may have incorrectly claimed help from the Coronavirus Job Retention Scheme (CJRS) need to act now to avoid significant penalties from HMRC if your claims are a mistake. The deadline for repaying incorrect claims is October 20, 2020.

Throughout the UK, HMRC has notified  30,000 businesses before the commencement of the investigation.

Government figures show that  453,700 jobs furloughed in the North West up to July 31.

HMRC deadline helps companies etc. to point out errors on receipt of payments. By doing this, fines, etc., should significantly be reduced along with more severe actions.

Common concerns include mistakes in the original grant submission or the company traded far better than predicted between March and October may show that the business was not qualified for help.

The self-reporting timeframe is short though should avoid the problem increasing.

Eligibility remains the biggest question. If your business performed better through the COVID-19 pandemic, then really should you have claimed and so need to pay back the support?

FURTHER, the level of claim is a further main issue.

Fraud will result in a criminal action, and HMRC advises that they have a significant resource to carry out audits.

Therefore, a business that applied for grant support needs to accumulate proof that proves the financial circumstances and captures internal management discussions about the CJRS applications.

HMRC remains determined to approach blatant misuse of the scheme.

The letter might not come for a couple of years investigating matters due to volume, Therefore, ensuring you prepare to justify your claims and hold documents, and any additional evidence is vitally important.