EMPLOYERS who have claimed too much in the coronavirus furlough scheme could be sanctioned if they do not repay the cash
HMRC is to write to 3000 companies every week which they believe have over-claimed for employees furloughed through the Coronavirus Job Retention Scheme (CJRS).
More than 1.2million employers have applied to the scheme in total since it launched in April, protecting around 9.6million jobs.
However it is thought around 2% - or 24,000 firms - may have claimed more than they were entitled to.
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The CJRS scheme is due to wind up in October completely, prompting calls from the SNP and Labour to extend it or risk a national wave of mass redundancies.
The tax body said it hopes companies which have over-claimed on the scheme will come forward themselves to discuss the error, but will begin contacting selected firms today.
If companies contact HMRC within 90 days of receiving the money they mistakenly claimed, and repay it on time, they will avoid penalties.
The over-claims have been detected by the tax body based on information held about the company, for example a firm may have claimed an amount wildly different to the PAYE data submitted in the months prior to the CJRS beginning.
HMRC said it will "not seek out innocent errors and small mistakes for compliance action." however it will take action against firms "who deliberately set out to defraud the system or claim money they aren’t entitled to."
In July, a 57-year-old man was arrested on suspicion of fraudulently claiming £495,000 from the scheme, and is the first known case of its kind in the country.
The letter sent to firms states that they should contact HMRC even if they believe their claim was correct, and warns: "If you do not contact us we may start a formal compliance check. This may mean you have to pay statutory interest and penalties. This may mean you have to pay statutory interest and penalties."
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It adds: " We are supporting our customers while tackling serious fraud and criminal attacks. We understand mistakes happen, particularly in these challenging times, and will not seek out innocent errors and small mistakes for compliance action."
Earlier this month HMRC confirmed thousands of people who had claimed through the Self Employment Income Support Scheme (SEISS) had been overpaid.
Around 16,000 people are thought to have been affected by the overpayments, but instead of being asked to repay the cash, they received less in the second grant instalment on August 17 to compensate for the error.
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