Businesses and sole traders who that took Covid support funding that they weren’t actually eligible for have until 31 December to repay the money or face enforcement action.
The government launched the voluntary repayment scheme in September giving businesses a ‘no questions asked’ chance to repay money they were not entitled to or did not need.
The scheme closes at 11.59pm on New Year’s Eve, after which non-payers face up to 100% fines, with the most serious cases facing court action and a potential prison sentence.
The Treasury said 300 allegations of Covid fraud, worth £35 million, have been made since a new reporting service was set up alongside the repayment scheme.
Earlier this month, an independent report said fraud and error related to the Covid schemes amounted to £10.9 billion.
Chancellor Rachel Reeves said: “The message is clear – if you wrongly claimed, put it right now. This money belongs to your local community – our NHS, our schools and our vital public services took tax-payer-funded help they weren’t entitled to and who fails to come forward will face the consequences.”
The voluntary repayment scheme applies to those who received support through the following schemes:
- Coronavirus Job Retention Scheme (CJRS)
- Self Employed Income Support Scheme (SEISS)
- Eat Out to Help Out Scheme
- Cultural Recovery Fund
- Business support grants
- Grants from the Department for Health & Social Care
- COVID-19 Business Loan Guarantee Schemes, e.g. Bounce Back Loans
Details for how to make repayments for each scheme are here.
If you’re struggling to repay, you should speak to your lender. You may be able to use the ‘pay as you grow’ options, such as extending the loan term, making interest‑only payments or taking a repayment holiday.
You can get free, impartial debt advice from Business Debtline on 0800 197 6026 or at www.businessdebtline.org.