Furlough
Leave Enquiries
The Coronavirus Job Retention Scheme (CJRS) was introduced to support businesses during the COVID-19 pandemic. Although the scheme helped many survive a period of financial difficulty, it also created a significant risk of scrutiny. HMRC has been actively reviewing furlough claims, and many businesses are now facing furlough leave enquiries. These enquiries can result in serious financial consequences, even when errors were unintentional.
At My Tax Consultants, we specialise in providing clear, experienced advice for businesses facing a furlough leave enquiry. Our goal is to help you respond correctly, defend your position where appropriate, and bring matters to a conclusion as efficiently as possible.
Understanding Furlough Leave Enquiries
An HMRC furlough leave enquiry can be triggered for various reasons. Sometimes enquiries arise because of random checks. In other cases, HMRC may have been alerted by inconsistencies in payroll records, PAYE filings, or from third-party reports. Businesses that made mistakes in good faith are treated differently from those suspected of deliberate fraud, but in both situations, careful management of the enquiry process is vital.
HMRC will typically focus on verifying:
- Whether employees claimed for were genuinely furloughed
- Whether correct amounts were claimed
- Whether proper records were maintained
- Whether businesses complied with scheme rules regarding employee communications and work prohibitions during furlough
Even minor errors can lead to HMRC seeking repayment, and, in more serious cases, imposing penalties or pursuing further investigation.
Risks of Mishandling Furlough Leave Enquiries
When businesses do not respond properly to a furlough leave enquiry, there is a real risk of:
- Repayment demands for amounts claimed
- Additional tax assessments
- Financial penalties of up to 100% of overclaimed sums
- Publication of the business’s name under HMRC’s deliberate defaulters programme
- Criminal investigation for fraud where dishonesty is suspected
The way a business handles an initial furlough leave enquiry often determines the overall outcome. Poorly handled enquiries can escalate quickly, leading to higher penalties and reputational damage.
How My Tax Consultants Support Furlough Leave Enquiries
Our team at My Tax Consultants provides full assistance for businesses dealing with furlough leave enquiries. We start by reviewing all correspondence received from HMRC and conducting a detailed assessment of your furlough claims. This enables us to identify any potential risks early and prepare a clear, consistent strategy for responding.
We prepare written responses to HMRC questions, compile supporting documentation, and liaise directly with HMRC officers where appropriate. If mistakes have been made, we can guide you through voluntary disclosure procedures that often lead to reduced penalties. If HMRC’s position is incorrect or unreasonable, we are prepared to challenge their findings robustly on your behalf.
Our focus is always on closing down the enquiry efficiently while protecting your financial and reputational interests.
Typical Outcomes in Furlough Leave Enquiries
When properly handled, many furlough leave enquiries result in no penalties or reduced settlements. Businesses that can demonstrate good faith, proper systems, and cooperation with HMRC are often treated more leniently.
Where there are genuine errors, HMRC will usually seek repayment of overclaimed sums but may reduce penalties significantly if early disclosure and full cooperation are provided.
In cases where HMRC alleges dishonesty, more serious consequences can follow, including civil fraud investigations under Code of Practice 9 procedures. Immediate specialist advice is essential in such cases to minimise exposure.
Why My Tax Consultants?
We understand that a furlough leave enquiry can be stressful, time-consuming, and confusing. At My Tax Consultants, we bring practical experience in handling HMRC furlough investigations across a wide range of industries. We work with owner-managed businesses, SMEs, and larger corporates, giving clear, focused advice that matches the scale and seriousness of each case.
Our service is confidential, diligent, and determined. We focus on achieving the best possible outcome for our clients, and we do so without unnecessary jargon or delay.
Contact My Tax Consultants
If you have received a letter, notice, or other contact from HMRC regarding a furlough leave enquiry, contact us today. Early intervention is key to protecting your business and limiting any potential liability.
