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Coronavirus job retention scheme: Support payments were incorrectly based on future agreed earnings which were not actually paid

By Mark McLaughlin, January 2025

Coronavirus job retention scheme: Support payments were incorrectly based on future agreed earnings which were not actually paid  

Coronavirus job retention scheme support claims based on future agreed earnings which  

were never paid were incorrect, as there was no statutory basis for the support payments to be calculated using those earnings. 

The appellant company was set up by an individual (DS) in 2016. DS and his sons were skilled craftsmen. The company was operated as a family business, which employed DS’s sons. The terms of their employments were never reduced to writing. Because the business was small and money was tight, the employees were paid well below the market rate. The idea was that when trading improved, their remuneration would be increased. However, it was not until Christmas 2019 that this became possible. 

At a family meeting during Christmas 2019, it was agreed that with

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