The number of people on furlough has fallen to the lowest level since the start of the pandemic, with 340,000 people moving off the scheme in July alone, and figures released by HMRC show that firms who have overclaimed or decided they no longer need payments received through the Coronavirus Job Retention Scheme handed back £300 million in the last three months.
In total, they have repaid £1.3 billion to HMRC since July 2020 through adjustments to claims and the voluntary disclosure service, which will continue into 2022.
Chancellor of the Exchequer, Rishi Sunak, said:
“This Government stepped in to help when people needed it most, supporting nearly 12 million jobs through furlough.
“This worked, nearly 2 million fewer people are now expected to be out of work in the UK than previously feared.
“Now with our recovery underway it is heartening to see that £1.3 billion in furlough grants have been returned as the economy recovers.
“HMRC is also cracking down on those who have fraudulently claimed furlough through its 1,250-strong Taxpayer Protection Taskforce.
“With businesses reopening and employment rising to near pre-pandemic levels thanks to the successful rollout of the vaccination programme and the Government’s roadmap out of the pandemic, the number of people on furlough has fallen to a record low of 1.6 million. Around 340,000 people left the scheme in July, with more than a third aged between 18 and 34 – a clear sign the government’s Plan for Jobs is working.
“The furlough scheme has protected nearly 12 million jobs and supported more than 1.3 million businesses, with 910,000 jobs in Scotland protected, 470,000 jobs in Wales and 280,000 jobs in Northern Ireland, securing livelihoods in communities across the United Kingdom.
“Furlough was the right thing to do at the height of the pandemic, when necessary health restrictions were in place – this way we were able to protect lives and livelihoods. As the economy reopened and businesses started to trade again its right that employees can get back to work.”
Customers can make a repayment online by card through HMRC’s online repayment service or by bank transfer.
The CJRS closes on 30 September. Employers need to make their September claims by 14 October.
After having had the best 12 months in the last decade, no estate agent has an excuse not to repay furlough monies. If businesses keep hold of it, they are contributing to tax rises which have already begun.
It is a simple matter of integrity and this will run and run and run with journalists continuing to expose companies which were profitable during covid and whose owners “profiteered” from emergency support monies.
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I think it’s lovely that some companies are paying back furlough money, but I disagree that it should be expected of them (no, I’m not a business owner).
Nobody expects the graduate who received a grant (not loan) to study at university to pay back said grant once they start earning good money; so why expect it of companies?
One could argue that by earning that good salary, the graduate pays more tax and thus “repays it” via tax. One could argue the same with a business; higher profit means more tax paid; thus “repaid”.
For those who disagree, please explain to me why you expect a business to repay a grant when making good money but not an individual.
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Compliance Guy – you’re not a business owner and I wouldn’t blame you for not understanding. Let me help you.
Firstly, Google “integrity” and take the time to think about its meaning. Secondly, read the Gov’s announcements last March when furlough was being rolled out. It was intended for emergency purposes to save jobs and business. Gov took other measures in our sector which meant that our businesses became more profitable and we did not need a chunk of emergency money. Lastly, think about it in a different way. Why have the most credible companies already repaid furlough monies?
Have a think about what motivates their decision. Try not to think of reasons and methods of how to fleece society for your own personal gain, and rather how a business can benefit society fairly and honestly. It’s called integrity as a business owner.
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You didn”t really address it though, did you?
Are you saying individuals do not have integrity and that only companies do? If not, then why would you not expect someone earning £100k a year to have the “integrity” to pay back the grant they received from the government to study at university? Do you expect them to? Probably not. Why is it any different?
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Don’t worry about the genuine furlough, I know companies who abused the system. Furloughed workers while they worked from home. You know who you are, pay back before you get whistle blown!
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the list of companies claiming furlough is shocking. Electricians !!! could not find one for love or money, who was not stacked out with work.
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I must confess to be conflicted.
We did receive business rate grant and I have been thinking about returning it, but I also knew that the Government would be looking to recuperate the financial support via the tax system, which they have now announced increases in corp tax. As such, returning this money will not mitigate the tax hike.
Personally, I think the Government should have set up a system whereby any monies returned, whether it be furlough payments, business rate grants, interest on bounce back loans etc. should be be put towards the increase in our business taxation over a few years. My belief is that the Government gets repaid far more quickly than the tax hike would generate, bearing in mind the phasing in of corp tax, and companies are more likely to return money without being penalised by paying more tax.
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