As we expected and have said throughout since the Furlough launch, it has been noted by the Financial Adviser & Rachel Mortimer that the HMRC will impose a Penalty on Directors who deliberately flout the rules of the Government Retention Scheme.
Since the introduction of the scheme we have ensured with our clients that they have been kept updated continually with regular updates on changes as they happen and how it affects their business and teams whilst also ensuring for audit & professional purposes that the correct systems are used and documentation kept for inspection if needed. This is everything from letters used to HR / Payroll data and provides an audit proof record if ever needed in the five year retention period required by the HMRC.
Personnel today (Jo Faragher) on the 3rd June 20 has reported that the HMRC has received 1,900 reports of fraudulent use of its furlough scheme that details HMRC has also just published draft details of changes to the Finance Bill 2020 that will give it powers to hold directors liable for tax charges if they deliberately flouted the rules of the Coronavirus Job Retention Scheme.
The draft tax information and impact note said HMRC would have “powers to make a company officer jointly and severally liable for the Income Tax charge raised in relation to any CJRS payment to which the company was not entitled or any CJRS payment which was never intended to be used to pay furloughed employee costs in certain circumstances”.
Is your business ready for an HMRC inspection? Have you followed all the rules correctly and ensured you have dotted the ‘I’s’s” & crossed the ‘T’s’?
Only time will tell, how many people have tried to take advantage of the scheme and we wish all businesses every success for the future and if applicable the return of their teams to the business.
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