TC09633 - [2025] UKFTT 01096 (TC)

HMRC argued that the CJRS was established to provide Support Payments to employers on a claim made in respect of costs of employment of furloughed employees arising from the coronavirus pandemic. The scheme allowed a qualifying employer to apply for reimbursement of the expenditure incurred by the employer in respect of the employees entitled to be furloughed under the scheme.

Sections 71 and 76 of the Coronavirus Act provided the Treasury with the power to direct HMRC's functions in relation to coronavirus. Pursuant to these powers, the Treasury introduced the Coronavirus Direction to govern HMRC's administration of the CJRS on 15 April 2020 (subsequently followed by several updated Directions in relation to CJRS during the pandemic).

Paragraph 8 Schedule 16 FA 2020 provides that recipients of CV Support Payments are liable to income tax if they were not entitled to a CV Support Payment that they received. The amount charged (by way of assessment) is equal to the amount of support payment to which the applicant was not entitled.

Under paragraph 9(1) Schedule 16 FA 2020, when an Officer of Revenue and Customs finds that a person has received an amount of coronavirus support payment to which they are not entitled the Officer may raise an assessment.

HMRC argued that, having checked the information held on HMRC's RTI system and having considered evidence and information provided by the Appellant, Officer Walker identified that CJRS claims had been made that were based on amounts that exceeded the qualifying costs in respect of which the Appellant was entitled to claim.

HMRC submitted, based on the testimony of Officer Walker contained within her witness statement, that Officer Walker's opinion was formed in consideration of the relevant evidence and that her conclusion was a reasonable one and accordingly that the assessments were issued to the Appellant correctly under paragraph 9 Schedule 16 FA 2020 within the applicable time limits provided under s 34 TMA.