HMRC coronavirus job retention scheme compliance activity

Key points

• HMRC’s taxpayer protection taskforce will be in place until March 2023 to concentrate on recovering overclaimed furlough scheme payments.
• The Carlick Contract Furniture First-tier Tribunal case indicates that HMRC is applying the rules strictly.
• Employers must keep all coronavirus job retention scheme records for six years.
• Letters from HMRC enquiring into claims should be acted on immediately.

The coronavirus job retention scheme (CJRS) provided grants to employers towards their wage costs between March 2020 to September 2021. The aim was to help them retain and continue to pay staff during pandemic lockdowns and restrictions by furloughing employees at up to 80% of their wages. The scheme has come at a cost to taxpayers of £70bn with 11.7 million employees furloughed.

HMRC chief executive Jim Harra stated in November 2021 that around £2.3bn of overclaimed CJRS and other coronavirus grant monies were expected to be recouped over the...