With £760 million of over-claimed furlough funds reportedly already being repaid to the treasury, HMRC have updated their guidance on repaying Coronavirus Job Retention Scheme (CJRS) furlough grants that have been over-claimed by employers.

Employers, or their agents, must use the online service to get a unique payment reference number before they can pay HMRC back.

Note that HMRC may levy a penalty if employers have over-claimed a grant and have not repaid it, and must notify HMRC by the later of:

  • 90 days after the date you received the grant you were not entitled to
  • 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed
  • 20 October 2020

For More Guidelines See: Pay Coronavirus Job Retention Scheme grants back – GOV.UK (www.gov.uk)

The CT600 corporation tax return has also been amended to require companies to report CJRS grants received and the amount they were entitled to.

The updated form also requires the company to report any over-claimed amounts already repaid using the procedure above and the balance still outstanding.