How to prepare your business for a CJRS compliance enquiry

cjrs-social.png

HM Revenue and Customs have established a dedicated task force to validate the accuracy of furlough claims.

With some £70bn invested into the Coronavirus Job Retention Scheme (CJRS) since it was first introduced in April 2020, HMRC is actively contacting employers as part of its compliance activities.

If a business is found to have claimed in error, financial penalties can be enforced. Furthermore, criminal prosecution can follow if furlough fraud is suspected.

Fortunately, businesses can take steps now to help ensure that they are ready for a CJRS enquiry and act to mitigate potential penalties. You do not need to wait to receive a compliance check letter from HMRC to get your furlough affairs in order.

Having helped hundreds of businesses negotiate the complexities of furlough schemes, Pierce Business Advisory and Accountancy Group are ideally situated to talk you through the what, why, and how of CJRS compliance and how you can prepare today. Let’s get to it.

What exactly is a CJRS compliance check?

In short, HMRC is writing to businesses and asking them to pay back CJRS payments where too much has been paid or if furlough fraud is suspected. The HMRC may also contact employers by phone or in writing to check:

Company Tax Company VAT returns Accounts submitted and tax calculations Self-assessment tax return Any taxes you pay If you have employees, PAYE records and returns

Such compliance checks can take place randomly; there does not need to be a suspicion of inappropriate activity for the HMRC to reach out.

What are the penalties for furlough fraud?

Civil and criminal penalties can be enforced by the Fraud Investigation Service. The HMRC taskforce is expected to recover up to 1.5 billion in furlough overpayments and fraud by the end of 22-23. However, the true rate of error and fraud for Covid-19 support schemes in 2020-21 isestimated to run at 8.7% of the £60 billion paid out.

Why you need a furlough review

A furlough review or CJRS compliance review will help you prepare for an enquiry from HMRC. Furlough rules were complex and changed continuously; by undertaking a review you get an expert second opinion on decisions relating to furlough claims. This can give you peace of mind that your claims were completed in line with Government guidance.

Furthermore, a furlough review puts you one step ahead and will uncover any potential overclaims before HMRC can open an enquiry. This is incredibly important as an unprompted disclosure to HMRC can reduce any related penalties to zero.

By contrast, prompted discloses could lead to penalties that include 100% of overpaid CJRS payments. An external furlough review can help to show H M Revenue and Customs that “reasonable care” has been taken; this in turn, can help to reduce any penalties that may arise from a compliance visit.

How Pierce can help review your CJRS payments

Pierce Accountants provide a full CJRS review service which includes:

Sample or full recalculations of all furlough claims Checks for common calculation errors or possible misinterpretations of the furlough rules A breakdown of any under or over claims Recommendations on how to correct any errors found

All information is provided in a detailed report with calculations appended.

The Pierce furlough experts have already helped businesses just like you to get their CJRS payments in order. We have supported hundreds of businesses with matters related to furlough such as the UK-wide organisation, Roadchef.

Roadchef first contacted Pierce for help to complete furlough calculations at a time when claims were outstanding for a number of months and within 8 weeks, Pierce brought thousands of claims for their employees up to date. Head of Finance for Roadchef, Matt Edgar commented:

Roadchef is one of the UK’s largest motorway service operators and like many companies, has been hugely impacted by the Covid-19 pandemic. Over 2,500 of their staff have been furloughed under the Coronavirus Job Retention Scheme in 2020, creating a whole industry of work to ensure employees are paid correctly and that claims to HMRC aresubmitted timely and accurately.

Pierce … provided a single point of contact and was thorough in inputting to know our business and the processes that we had put in place. Within 8 weeks of starting work, they had provided us with the data to get up to date with our claims.

Start your furlough review today

Preparing for a coronavirus job retention scheme compliance enquiry needs to be at the top of your business's to-do list. Get the help you need to make the process as easy as possible by reaching out to Pierce today.

Complete a quick enquiry form for a free, initial furlough consultation. Alternatively, you can call 01254 688100 and ask for Philip Johnson, Payroll Manager.

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

Construction begins on new Civil Service office building in Talbot Gateway Alan McBride Muse Will Town Defence Infrastructure Organisation Jennifer Chard Defence Business Services Cllr Lynn Williams Blackpool Council Garry Bowker Vinci

Construction begins on new Civil Service office building in Talbot Gateway

20 May 2025

2

Skiddle raises over £750,000 for charities Skiddle cheque presentation to Alder Hey Hospital

Skiddle raises over £750,000 for charities

20 May 2025

3

Former Victorian Hotel approved for residential conversion The site

Former Victorian Hotel approved for residential conversion

19 May 2025

4

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing Oliver Webber, Tracy Clavell-Bate and Tim Webber from Barnfield Group with Cllr Phil Riley, second from right, Leader of Blackburn with Darwen Council

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing

19 May 2025

5

Two Cuckoo Gins named winners in The Gin Guide Awards 2025 Mark Long

Two Cuckoo Gins named winners in The Gin Guide Awards 2025

19 May 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
22 May 2025 - 22 May 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up: May
Freelancer Meet-Up May.png.png
LBV Hub Networking
22 May 2025 - 22 May 2025

Preston Freelancer Meet-Up: May

society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Liverpool Business Expo 2025
https---cdn.evbuc.com-images-881365363-4862066883-1-original.20241023-085714.jpeg.jpg
LBV Hub Awards
23 May 2025 - 23 May 2025

Liverpool Business Expo 2025

Aintree Racecourse , Liverpool , L9 5AS

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – May 29
Artboard 15.png.png
LBV Hub Seminars
29 May 2025 - 29 May 2025

Advantage: AI – A Workshop for Business Leaders – May 29

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin