The HMRC have given those who still owe “Covid scheme money” to the public purse a time limited opportunity to pay it back before tougher sanctions come into play next year.
A new voluntary scheme opened on 12 September 2025 giving individuals and businesses until December 2025 to repay money that they were either not entitled to or did not need during the pandemic.
This includes funds obtained under the Coronavirus Job Retention Scheme, Business Support Grants and Business loans (i.e. bounce back loans). Whilst this voluntary scheme is to be on a no questions asked basis directors of companies still need to be aware that repayment under this scheme does not guarantee any protection from enforcement action. In particular, if the company is insolvent and being dealt with by an insolvency practitioner who will still have duties to report any misconduct in the usual way.
As over £10 billion is said to have been lost to pandemic fraud it is likely that next year more pressure will be put on government departments and insolvency practitioners dealing with insolvent companies to pay more attention to “Covid Scheme Money” and its repayment.
Get in touch
If you are a director of a company that is in liquidation and need advice on your position please contact Leanne Schneider-Rose, Partner in our Restructuring and Insolvency team on 0121 698 2200.
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