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HMRC was entitled to claw back scheme payments

By Mark McLaughlin, September 2025

A company’s payments to employees under the coronavirus job retention scheme were not ‘qualifying costs’ under the relevant scheme legislation, and an appeal against assessments to claw back payments was dismissed.     

Prior to the coronavirus pandemic, the appellant company employed up to 50 full-time staff plus part-time students. Under the coronavirus job retention scheme (CJRS), the appellant had claimed and received CJRS support payments or grants in relation to three employees (Anthony, Amy, and Amelia). Employers could only claim grant payments for furloughed employees for whom HM Revenue and Customs (HMRC) had received PAYE Real Time Information (RTI) communications in the form of a full payment submission (FPS) by specific dates.  

For CJRS grants covering periods up to 31 October 2020, the RTI FPS had to be received by 19 March 2020, disclosing the employees’ 2019/20 pay from the

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