Furlough Scheme – Have you claimed correctly?

Almost £20bn had been paid out to over a million employers in furlough grants by 7^th June 2020. Whilst the guidance on the furlough leave scheme has been regularly updated, two messages have been consistent:

1. The employee must not carry out any work for their employer whilst on furlough leave; and
2. HMRC has always confirmed that it intended to investigate incorrect and fraudulent claims for grants under the scheme.

The furlough leave scheme guidance confirms that an employer must pay an employee a minimum of 80% of their wages whilst on furlough leave. Whilst the amounts that an employer can claim back from HMRC from 1^st August 2020 onwards will begin to reduce, the employer will still need to pay a minimum of 80% wages to the employee.

By the end of May, HMRC had received almost 2,000 reports to its digital reporting service of fraudulent use. The majority of complaints involved employees being placed on furlough leave but then being asked by their employer to carry out some work at the same time. This is a clear breach of the terms of the scheme.

Guidance updated on 12^th June 2020 confirms that the claims portal will allow employers to declare mistakes that they may have made in previous claims, which can then be offset in their next claim. This amnesty gives employers the opportunity to resolve any issues that may have arisen before any action is potentially taken by HMRC. The guidance also allows employers to raise any error that has resulted in an under-claimed amount.

If you have made a claim, please take time to check that you have submitted your information correctly. If you would like advice on this, or any other aspect of the furlough leave scheme, please contact Ben Stanton on 01908 660966 / 01604 828282 or by emailing ben.stanton@franklins-sols.co.uk.