The Covid-era was a tough time for both individuals and companies. Fortunately, the UK Government was able to provide some financial support. However, the Covid support schemes had strict and complex rules to follow, which left them vulnerable to interpretation and open to abuse, leading to both excessive and fraudulent claims.
The Government now provides individuals and companies the opportunity to repay amounts that were wrongfully claimed. On Friday 12 September, HM Revenue and Customs (HMRC) opened a voluntary repayment scheme, giving recipients of Covid support payments a “no questions asked” opportunity to repay amounts that they were not entitled to.
This opportunity is open until December 2025 and is a final chance to come forward and repay any outstanding amounts before facing potential prosecution. It has been reported that from January 2026 enforcement and investigation work will increase, this is in line with additional investigatory powers being introduced next year. Failure to act now could result in criminal prosecution and director disqualification.
The Covid counter fraud commissioner Tom Hayhoe said: “Our message to those who still owe Covid era money is simple – pay now, clear your conscience, or face the consequences”.
This is a clear warning message, showing that there will be consequences for not acting now. If you claimed support compliantly then there is no reason to be alarmed. However, if there is any doubt about whether the correct amounts have been claimed or the validity of your claim, your position should be urgently reviewed.
The voluntary repayment scheme covers all Covid schemes, including:
- Coronavirus Job Retention Scheme (CJRS)
- Self-Employed Income Support Scheme (SEISS)
- Eat Out to Help Out
- Cultural Recovery Fund
- Business support grants
- Covid-19 business loans (e.g., Bounce Back Loans)
- Grants from the Department for Health & Social Care
- Any other Covid-related grants, loans, or benefits
How can Menzies assist you?
At Menzies, our Tax Disputes and Disclosures team are experts in dealing with HMRC and resolving complex tax disputes. If you have any questions regarding the Covid repayment scheme, or ongoing investigations related to Covid support payments then please contact our team for confidential advice.
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