How Did We Do When the World Turned Upside Down

Furlough Defence Unit

Ensure CJRS compliance with our multi-disciplinary team.

Laytons LLP | Furlough Defence Scheme

Furlough Defence Scheme Since the Chancellor, Rishi Sunak announced his unprecedented bail out, the Coronavirus Job Retention Scheme (the Furlough Scheme) it is estimated that claims in respect of nearly 8m employees have been made and over ÂŁ10bn claimed.

As guidance has changed, employers have struggled to keep up with what they should be doing if claiming under the Scheme and it is inevitable that mistakes will have been made.

With increasing reports of alleged fraud, additional legislation has been passed to allow for recovery of payments and to enforce a penalty of up to 100% of the false claim if it is shown to be deliberate.

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Laytons LLP | Furlough Defence Scheme

With HMRC seeking to pursue criminal sanctions against cases of fraud, questions to consider are: 1. Did you put in place a 'Furlough Agreement' with all the employees you furloughed?

2. Did you check the CJRS guidance every time it was updated to ensure you complied with it?

3. Did you review the HMRC directions when published to ensure you complied with their terms and applied them correctly?

4. Can you be satisfied that your recordkeeping was sufficient to prove you complied with the CJRS? Do you have an audit trail?

If you require any assistance or have any questions relating to the Coronavirus Job Retention Scheme, please contact a member of our team below.

Nicholas Lakeland Partner | Employment nicholas.lakeland@laytons.com +44 (0)20 7842 8000

Marc Selby Partner | Tax marc.selby@laytons.com +44 (0)20 7842 8000

Jennie Kreser Consultant | Pensions jennie.kreser@laytons.com +44 (0)20 7842 8000

5. Did you have procedures in place to ensure your Furloughed employees didn’t actually work for you. Were these procedures documented?

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