CJRS claims and audit trail

Over 71% of UK business have furloughed some workers and claims have been made by 309,000 employers representing £2,600,000.000 in claims.

The CJRS portal has been up and running for just over a week and payments are due to be made in a matter of days.  However, it is imperative that businesses are aware of the possibility of their claim being audited and ensure that claims are submitted adhering to the strict guidance issued by HMRC.

It is expected that retrospective audits will be carried out on numerous claims and HMRC could potentially seek to recover payments unless you can demonstrate that:

  • Employees were furloughed for the correct reasons.
  • You had permission from each employee.
  • The claim was calculated correctly.
  • The full amount received from the grant was paid in its entirety to the employee.
  • Furloughed employees have not carried out any work.

Additionally, the payments must be returned if a claimant becomes “unwilling or unable” to use the payment for the purposes of the scheme. Payments must also be repaid if claims are found to be fraudulent or dishonest, in this instance HMRC could also prosecute.

Full and accurate records detailing all the above for each furloughed worker must be kept for 5 years.

If you need assistance on any aspect of the furlough process please contact Sarah Collier scollier@kbl.co.uk


This information was correct as at 30th April 2020.