DON’T PANIC!
LEGAL
TOP TIPS for dealing with HMRC furlough enquiries
The Coronavirus Job Retention Scheme (CJRS), commonly referred to as ‘furlough’ was introduced by the UK Government in March 2020. While relatively unheard of prior to the pandemic we have, since March 2020, been consistently hearing or using this word. In this article Sheetul Sowdagar from Russell-Cooke gives some top tips to wrap your head around furlough fraud and dealing with enquiries. Many of us may or may not know that the Oxford English Dictionary defines furlough as “to give somebody permission to leave their duties for a period of time”.
the furlough scheme to help retain their
show your intention of being cooperative,
employees during the pandemic may
but will also help address any issues,
receive queries from HMRC. These could
without the need for escalation.
even be in cases where only legitimate
In the press, we have seen increasing mention of ‘furlough fraud.’ It has recently been estimated that the UK Government is likely to write off £4.3 billion in furlough fraud.
furlough claims had been made.
Tip 3: Make sure you review your records and keep copies.
What is furlough fraud?
respond to any queries received.
Examples of furlough fraud could include:
Tip 1: Do not panic!
• Furloughed staff being asked to continue to work; • Claiming furlough pay for staff who did not qualify for the scheme; • Claiming furlough pay for ‘made up’ staff; • Over-claiming furlough pay;
Help – I’ve had a query from HMRC
This will allow you to refresh your
Below are some practical tips to help you
HMRC if needed.
Understand that HMRC may be following up leads or simply asking questions to ensure that all claims made were done so properly.
Tip 2: Do not bury your head in the sand. While it is easy to get distracted in keeping the business running, it is
• Not passing the full amount of furlough pay to the furloughed employees;
important to understand that this is not
• Deliberately providing false information to receive furlough pay from HMRC.
yourself to engage with HMRC, then make
While it is understood that only a very small minority intended to defraud HMRC, it is known that HMRC have started ramping up their investigations and actively following up on tip-offs received. Many business owners in the UK who had accessed
going to go away. If you cannot find time sure you instruct an adviser who can do so on your behalf.
memory and more importantly have all your documents ready to disclose to
Tip 4:
Be transparent.
In the event you realise that a mistake has been made, or any overpayments have occurred, make sure you promptly inform HMRC.
Tip 5: Keep records for a minimum of six years. Even if you were successful in addressing any queries and the matter was subsequently resolved, do keep your records for a minimum of six years to assist you with any potential future queries.
We can help It goes without saying that if any actions
It is often too easy to say that we ‘will deal
are being taken against you by HMRC,
with this later’ and soon enough a month or
please seek independent legal advice
more has gone by. It is always better to be
urgently. Contact our senior associate
proactive and start engaging with HMRC
Sheetul Sowdagar in our professional
as soon as possible. This will not only
regulation team, for help.
Sheetul Sowdagar
Direct: +44 (0)20 7440 4806 Email: Sheetul.Sowdagur@russell-cooke.co.uk
russell-cooke.co.uk +44 (0)20 8789 9111
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