HM Revenue & Customs (HMRC) has received almost £400 million from firms paying back furlough grants, but thousands of companies that failed to keep proper records for the Coronavirus Job Retention Scheme (CJRS) will be the first to be investigated, it has emerged.

The Daily Mail reports that HMRC are to investigate claims of widespread fraud in the thousands of claims made under the CJRS scheme, and the companies that did not keep proper records will be facing the most scrutiny.

The deadline for making the repayments was 20 October 2020 in respect of claims received prior to 22 July 2020, and for claims received after that date the deadlines for making repayments of amounts incorrectly claimed are 90 days after receipt of the funds.

It is vital that employers continue to check historical CJRS claims to ensure the numerical accuracy of claims, and that they were justified in making the claims.

The increased flexibility of the scheme and the extension until 31 March 2021 means it is important employers and employees are fully aware of how the scheme operates and that everyone is compliant.

Mistakes made in past claims should be corrected as soon as possible. While HMRC will not be looking to punish honest mistakes, it will come down heavily on those who have abused the system.

What records should you keep for Coronavirus Job Retention Scheme claims.

Businesses must keep specific records to support Coronavirus Job Retention Scheme claims with HMRC. They include:

– The amount claimed and claim period for each employee

– The claim reference number for the records

– Calculations in case HMRC need more information about the claim

– Usual hours worked, including any calculations that were required, for employees flexibly furloughed

– Actual hours worked for employees flexibly furloughed

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