Coronavirus Job Retention Scheme and Furlough - what to do if you have over-claimed

Posted on 10th June 2020 by Streets

The Coronavirus Job Retention Scheme (CJRS) was introduced quickly to help safeguard jobs for those workers who, due to lockdown, were unable to work at their normal place of work or from home.

Whilst those employers who are still making claims, and have previously, under the Scheme may have got to grips with the necessary process for calculating and submitting claims, a number may have found they have inadvertently overclaimed. As a result, they will have received more money than they are entitled to and as such are required to pay back this overpayment to HMRC.

To manage the refund of overpayments, HMRC have updated the application system so you can tell them if you have over-claimed in a previous claim. When you make your next application for the grant, you’ll be asked if you need to reduce the amount to take account of a previous error. If so, your new claim amount will be reduced to reflect this. You should then keep a record of this adjustment for six years.

If you have made an error in a CJRS claim and do not plan to submit further claims, HMRC are working on a process that will allow you to advise them of your error and pay back any amount you have over-claimed. We will update you when this is available.

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