HMRC has sent out letters concerning possible repayments to around 3,000 businesses that claimed wages for furloughed employees through the Coronavirus Job Retention Scheme (CJRS).

Figures released by the government indicate that 1.2 million companies signed up to the CJRS, with 9.6 million employees being put on furlough. The cost of this has amounted to £34.7 billion and HMRC has been carrying out assessments of these companies to determine whether they complied with the rules. This has been ongoing, with the letters representing the latest stage.

Letters are being sent to those business owners that the tax authority has concluded may have either claimed larger amounts under the CJRS than they were eligible for, or that might have been guilty of providing false information – for example, by putting workers in their claims that were not actually eligible for furlough.

The letters are to inform these business owners that they could have to pay back part of the CJRS grant – or all of it, in some cases. They ask those who receive them to look at their claims again and get in touch with HMRC.

If businesses repay any money they were not entitled to in the allotted time, no further action will be taken. However, it is expected that penalties will be handed down to those who intentionally claimed money they were not eligible for. Those affected may be thinking about contacting professional accountancy services in Goole, or any other area they are based in, for advice on what to do.