HMRC has already prepared for potential abuse of the GBP60-billion Coronavirus Job Retention Scheme announced by the Chancellor of the Exchequer last month to protect employees\u2019 livelihoods during the coronavirus pandemic.<\/p>\n\n\n\n
The scheme allows businesses to apply for a grant of 80 per cent of each employee’s usual wages up to a cap of GBP2,500 per calendar month, with the costs of employer National Insurance and pension contributions being covered by the government. Further details are in our blog here https:\/\/srcadvisory.com\/blog\/coronavirus-job-retention-scheme-made-easy-employers<\/a> <\/p>\n\n\n\n The initial three-month period began on 1 March 2020. It is available only where the employee cannot work due to the closures imposed by the Coronavirus Act 2020 and the Health Protection (Coronavirus, Restrictions) (England) Regulations 2020. <\/p>\n\n\n\n HMRC has said any fraudulent claims made under the scheme \u2013 for example, where employees have continued to work while furloughed \u2013 are likely to result in criminal convictions. Its chief executive Jim Harra, told Parliament last week that he expected it to be targeted by fraudsters and added that HMRC had put in place a number of measures to minimise fraud, which included:<\/p>\n\n\n\n When HMRC discovers abuse of the abuse is detected, it will disallow payments, seek recovery of any overpayment, and consider criminal action against employers.<\/p>\n\n\n\n