More than 1,200 companies have been sent late PAYE warnings by HMRC requesting a refund of unpaid PAYE and NI as the government begins to recover its pandemic-accumulated debt.
The warning letter states that future furlough claims will be blocked unless the company pays the unpaid PAYE and NI which is due on the furlough grants for workers. Under the furlough scheme, an employer agrees to pay the relevant PAYE and NI due when making a claim, even if the company is in administration. If the company is not able to do that, it needs to repay the money back to HMRC. HMRC considers the payments mentioned in its letter are part of the government grant to be returned and not an additional cost.
If your company is having trouble paying the outstanding PAYE and NI, you can apply to HMRC for a manageable repayment plan by contacting its Payment Support Service.
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