13th June 2022
MSI's London accounting member firm haysmacintyre highlights possible implications for employers.
HM Revenue & Customs (HMRC) are actively making enquiries into the Coronavirus Job Retention Scheme (the Scheme) claims which many employers relied upon during the pandemic.
As part of the audit process, HMRC will want to establish not only if the employer was entitled to claim under the Scheme, but also if the amounts claimed had been correctly calculated. If HMRC have reason to suspect any claim was not made in accordance with the HM Treasury Direction, they will seek to recover the amounts overclaimed together with interest and penalties.
Where an employer has made claims under the Scheme, they are required to keep a copy of all records for six years which must include:
Employers also need to be aware that HMRC are looking at other records to see whether employees were required to work, for example during the first phase of the Scheme when flexi-furloughing was not possible. HMRC will review social media records, emails, building access records, and mileage records, especially in cases where the enquiry has been instigated by a disgruntled employee reporting their employer about breaches in how the Scheme was operated.
haysmacintyre are a full service, award winning mid-tier firm of Chartered Accountants and tax advisors in central London, providing advice to entrepreneurs, fast-growing and owner-managed businesses, charities and not for profit organisations across the UK and internationally.
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