HMRC opens COVID related voluntary repayment scheme and launches COVID fraud reporting website

On Friday 12 September HM Revenue and Customs (HMRC) launched a new voluntary repayment scheme to provide recipients of COVID related support payments with a “no questions asked” opportunity to repay any amounts that they were not entitled to.

The new voluntary scheme will run until December 2025 and HMRC have stated that  following the repayment window, those who don’t pay will ‘face the consequences’ when ‘investigatory powers and tougher rules come into force’. The new voluntary scheme is being described as the “last chance” for recipients of COVID related support payments to come forward and repay any outstanding money or face prosecution.

COVID Counter-Fraud Commissioner, Tom Hayhoe made the following unequivocal statement on HMRC’s website:

“Our message to those who still owe Covid era money is simple – pay now, clear your conscience, or face the consequences.”

In addition to the new voluntary disclosure scheme, HMRC has launched a COVID fraud reporting website, allowing members of the public to report suspected fraud. There have also been changes made in relation to director disqualifications that could see more people stopped from being involved in businesses, or facing compensation orders.

The COVID support schemes

It is estimated that sums in the region of £225-250 billion were allocated through the various COVID-19 support schemes to businesses and self-employed individuals, including £70 billion claimed under the Coronavirus Job Retention Scheme (CJRS), which saw 11.7 million jobs furloughed and 1.3 million employers utilising it.  A further £28.11 billion was claimed across the five rounds of the Self Employment Income Support Scheme (SEISS). It is also estimated that £79.3 billion, spread across 1.67 million business support loans were approved throughout the pandemic.

HMRC believe that over £10 billion was lost to pandemic fraud, flawed contracts and wasted under the previous government’s mismanagement of pandemic era procurement and schemes. It’s understood that some of the misappropriated funds have been recovered already (approx. £1.54 billion), but it is felt that much more can be done. The Covid Counter-Fraud Commissioner is due to provide a full and final update to the Chancellor in December 2025, which coincides with the end of the Covid repayment scheme. 

What COVID support payments can be repaid through the new voluntary scheme

The new voluntary scheme and the COVID fraud reporting website can be used in relation to all COVID schemes, including loans, grants, social security and tax benefits.  Any recipients who have identified funds that they were not entitled to will be able to utilise the scheme. 

Next steps

Given that the new voluntary scheme is being touted as the “last chance” to repay any money that should not have been received, recipients of COVID related support money should consider conducting a thorough review of the funding they received and the evidence that they relied upon to support any claims. If you received any COVID related support money, we would urge you to contact a member of our team to discuss how we can help you with your review and, if necessary assist you with a disclosure and repayment to HMRC.

Kennedys Tax Disputes and Investigations team has extensive experience of assisting businesses and individuals to regularise their position in relation to COVID payments and can assist with investigating potential issues relating to receipt of COVID support payments, help to identify sums at risk, assist with the calculation of overpayments and manage HMRC throughout the disclosure and repayment process.