We are aware that HMRC has recently requested certain information from organisations to check whether the business has been using the Coronavirus Job Retention Scheme correctly.
Requests can be made on relatively short notice (most likely two weeks) so we recommend that employers have the information readily available and are able to provide it to HMRC in a timely manner. The information requested by HMRC is intended to ensure compliance with the scheme - that organisations are meeting the conditions and claiming the correct amounts.
What information is HMRC likely to Request?
- Employee information, including personal details, calculation details, hours worked
- Evidence of payments and claims
- Details of any adjustments or corrections
- Confirmation that everything matches the Real Time Information submitted
What Happens Next?
HMRC may phone the employer to seek further clarification. Whilst we have not heard of this happening yet, HMRC may request to see evidence of reserves or information to prove that furlough payments are necessary for the survival of the business.
We understand only a very low number of employers may be contacted. However, it would be sensible to consider whether you would be easily able to gather the information set out above should it be requested and to ensure that all furlough payments claimed can be justified in accordance with the terms of the scheme in force at the time.
Rebecca Fox is a Partner at award-winning law firm VWV, with offices on Clarendon Road, in Watford. Get in touch on 07747 481 989 or rfox@vwv.co.uk
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