What Happens If I Have Been Overpaid My Furlough Grant(s) ?

Overclaims fall into two categories; claiming an erroneous amount or claiming a grant to which you were no longer entitled if your situation as an employer changed, for example an employee left.

So what happens now?

A penalty will not be  incurred providing you can demonstrate that you were unaware that the grant you received was incorrect at the time you received it, or that your circumstances altered at that time. The overpayment must, however, be repaid.

You won’t be charged a penalty if you can show that you didn’t know of the overpayment at the time it was received. Alternatively, you won’t be charged if you can show that your circumstances changed at that time. It must also be repaid within the relevant time periods.   You’ll have until 12 months from when your accounting period ends to rectify errors.

On 1 July, HMRC updated its guidance on the furlough scheme. This update enabled organisations who have overclaimed through the scheme to correct this error in their next claim. Alternatively the overpayment can be paid directly to HMRC if you don’t make any future claims. If you choose this option you will need to  contact HMRC for a payment reference number before paying,

There are financial penalties for failing to comply with these requirements.

The Graham Agency, keeping you informed.