HMRC blocks thousands of furlough applications

24 Aug 2020

HMRC has blocked thousands of applications for the government's Coronavirus Job Retention Scheme (CJRS) due to fears they are fraudulent.

More than 30,000 CJRS applications have been rejected by HMRC, according to reports. At the end of June, 1,526 CJRS claims were rejected because the companies applying had ceased trading.

An additional 23,899 applications were rejected because businesses didn't have any employees on their payroll for the 2019/20 tax year.

HMRC reportedly believes many applications are fraudulent, and has taken steps to block claims.

The CJRS has provided £35.4 billion in support for 9.6 million jobs. It is being gradually wound down and will end in October, to be replaced by a Job Retention Bonus. This will see UK employers receive a one-off payment of £1,000 for each furloughed employee who is still employed as of 31 January 2021.

To qualify for the payment, the employee must be paid at least £520 on average in each month from November to January. Payments will be made from February 2021.