Under scrutiny for false furloughing claim? what can you do?
Defend yourself with the evidence!
Any firm that has benefited from the furlough schemes or grants should keep evidence to prove that employees paid under the schemes would still have been in work even if the pandemic had not happened.
This means keeping detailed records of the decisions made as to why they believed they were entitled to access payments under the schemes including what you they spent any grants on – which must be necessary company business expenditure.
Grant and bank loans were in effect Covid19 crisis payments in recompense and not to pay for private living expenses or directors’ personal expenditure.
Other issues HMRC is expected to look out for are businesses that did not pass on the full furlough payment to staff, and those that are subsequently found to have traded profitably without the need for the Government bailout.