Check your furlough claims advises accountants
Clive Owen LLP is advising local businesses to check their furlough claims for errors ahead of a Government crackdown on incorrect or fraudulent claims.
Kevin Shotton, partner at Clive Owen LLP, is also reminding employers to review their calculation methodology to ensure full entitlements are being claimed given updates to guidance that have been issued since initial claim periods were opened.
HM Revenue & Customs believes that up to £3.5bn of furlough monies may have been claimed in error or in fraudulent circumstances and is currently looking into 27,000 potentially illegal claims.
Kevin Shotton said: “This was a new process for all businesses and with the exceptional circumstances and pressures of the COVID-19 pandemic it is understandable that errors may have been made.
“There is an expectation from government that employers will check their paperwork and repay any excess amounts claimed in error.”
If an error is found the employer must tell HMRC within a 90-day reporting window to avoid penalties. The deadline for making a report will be the later of:
• 20 October 2020
• 90 days after receiving a grant the business was not entitled to
• 90 days after receipt of a grant the business was no longer entitled to keep due to a change in circumstances.
Kevin added: “HMRC has stated that employers who have made an honest mistake will be given the opportunity to work with them to put it right, and has published guidance on steps to take if a claim has been wrong.
“We are working with employers to assist them in checking their furlough claims and would always advise seeking professional help rather than take the risk of falling foul of HMRC.”
This was posted in Bdaily's Members' News section by News Gathering .