Finance Bill 2020 and job retention scheme claims

Jul 13, 2020

Next reading of the Finance Bill which will become the Finance Act 2020 is scheduled for 17 July 2020 in the House of Lords. At present the Bill currently contains provisions allowing HMRC to recover monies paid under the job retention scheme which the employer was not entitled to by imposing an income tax charge equivalent to 100% of the relevant grant not repaid.  

Under the proposed legislation, if an employer notifies HMRC within 90 days of the later of when Royal Assent is granted to the Finance Bill, or when the income tax became chargeable, they will be able to repay money wrongly received under the job retention scheme without incurring any sanction or penalty. The Bill is expected to receive Royal Assent later this month.