If you took advantage of the Government Corona Virus Job Retention Scheme (Furlough) we want to ensure your compliance. You MUST ensure that your PAYE is up to date, especially the tax year ending 5th April 2021 and the current tax year. Part of the entitlement criteria is you keep these payments up to date.
If you do not do this, you could be liable to pay the following:
- Furlough monies you have received back to HMRC
- 100% Penalties on your Furlough monies i.e., the total Furlough amount again
- All outstanding PAYE, both current and historical
- Daily interest and charges on the outstanding PAYE amounts
There may be further interest and charges on the Furlough monies as well.
Further non-entitlement criteria are as follows:
- Staff were working
- Staff were not paid in full
- Incorrect calculations resulting in an overclaim
Failure to notify HMRC of non-entitlement equates to 100% penalty.
There may be personal liability for directors for tax and penalties.
A declaration must be signed by directors on the CT600 stating the amount of report received vs the amount entitled to. This is the director’s disclosure to HMRC.
We strongly advise that you ensure your PAYE is up to date, and advise us of any possible issues in relation to entitlement to this support.
It is better we tell HMRC, rather than HMRC tells us.