Furlough mistakes! 10,000 employers to receive letters

The HMRC’s Taxpayer Protection Taskforce, was set up to ensure that furlough money has been claimed correctly.

The Taskforce is now writing to 10,000 more employers who they think may have made a mistakes with furlough claims. The letter will to ask the employer to check their claims.

For support and guidance correcting claims see:

Opinion

Have agreements actually been made? What calculation for reference salary and usual hours has been used? What look-back periods have occurred?

Whilst the furlough scheme has protected over 11million UK jobs, the process of agreements, calculation and grant claims has been complex.

Full furlough, flexi-furlough, what is the difference? Then from 1st December 2020 furlough could not be claimed for any notice, resignation or redundancy period – after all the scheme is to retain employment.

Then there is mass confusion on salary sacrifice and holiday pay. Furlough is post sacrifice and all monies claimed must be paid and cannot be reduced from furlough. Holiday must be paid in full.

From social media posts and questions, deadlines and limits, it’s clear that there is a lot of confusion. And then there have been arrests for fraud.

So now 10,000 employers and their payroll professionals will have to check calculations, and where errors are confirmed, potential payback of overpayments.

PAYadvice.UK 9/5/2021