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Company applied incorrect methodology in its calculation of support payment claims

By Mark McLaughlin, October 2025

The appellant company applied an incorrect method for calculating coronavirus job retention scheme claims, and HMRC’s assessments of the amounts overclaimed were for the correct amounts.  

The appellant management consultancy company made several claims for support payments under the coronavirus job retention scheme (CJRS) covering the period 1 April 2020 to 30 September 2021. There were 18 claims in total, with the first having been made on or about 6 May 2020, relating to two employees (RK and AK), who were also the appellant’s directors.  

HM Revenue and Customs (HMRC) subsequently opened an enquiry into the appellant’s CJRS claims. When asked by HMRC how the appellant calculated the usual pay of their employees, and their furlough pay, the appellant replied: “Details of usual pay are arrived at by experience in the consultancy industry, amount of leads generated, type of work undertaken, number of hours

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