This is a follow up to my recent blogs regarding the proposal by the Chancellor of the Exchequer to grant powers to HMRC to investigate fraudulent claims for grants under the Coronavirus Job Retention Scheme (CJRS) for employers and the Self Employer income Support Scheme (SEISS)
The planned amendments to Finance Bill 2020 are expected to receive Royal Assent this month (see https://services.parliament.uk/bills/2019-21/finance.html) and will include provision for a form of 30-day moratorium in which employers and individuals who come forward and notify HMRC of erroneous (or even ‘deliberately incorrect’) grant claims under the CJRS or the SEISS, will be able to provide a mitigation from being charged a penalty by HMRC.
For “Notification” to be complied with; you will need to ensure this is made within 30 days of the incorrect claim, or within 30 days of the Finance Bill 2020 receiving Royal Assent if the claim arose before that date.
Finally, once in receipt of Royal Assent, the legislation will confirm that grants under both CJRS and SEISS;
- are taxable income,
- will provide HMRC with the means of recovery of incorrect payments; and
- will provide HMRC with the power to impose penalties for deliberately false claims.