Category: COVID-19

Covid Repayment Amnesty – A Final Window to Come Clean

Posted on by Tooba

The UK government now offers a limited-time chance to repay Covid-era financial support without penalties, this Covid Repayment Amnesty scheme lets businesses and people return pandemic funds they shouldn’t have received through a “no questions asked” approach launched on September 12, 2025. You have until December 2025 to take advantage of this amnesty. After that, the government will impose stricter penalties on those who don’t come forward. Covid Counter-Fraud Commissioner Tom Hayhoe’s message is clear: “Pay now, clear your conscience, or face the consequences.”

This programme covers every Covid financial support initiative. These include the Bounce Back Loan Scheme (BBL), Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme, and various business grants. The government has also launched a Covid fraud reporting website where people can anonymously report suspected fraud cases. Your repayment method depends on the specific scheme you used. BBL recipients should contact their original lender directly. Other schemes have specific email addresses for voluntary repayments.

This programme aims to recover to pandemic fraud, flawed contracts and waste over £10 billion lost. The government has already recovered £1.54 billion and plans to strengthen its investigatory powers in 2026. Serious consequences await those who don’t use this final chance. These include prosecution, director disqualification, compensation orders, or jail time. The government’s updated director disqualification rules could also prevent more people from running businesses.

What the Scheme Covers and Why It Matters

The Covid Repayment Amnesty covers a complete set of support measures that rolled out faster during the pandemic. The programme applies to all Covid schemes, from loans and grants to social security and tax benefits.

Government data shows that £225-250 billion went to Covid-19 support schemes of all types. The Coronavirus Job Retention Scheme claimed £70 billion and helped 11.7 million jobs and 1.3 million employers. The Self Employment Income Support Scheme gave out £28.11 billion through its five rounds. Business support loans worth £79.3 billion received approval during the pandemic.

This amnesty’s impact is far-reaching. It offers a vital chance to recover the estimated £10 billion lost to pandemic fraud, flawed contracts and waste. The current recovery stands at only £1.54 billion, which shows the large sums still to be collected.

Bounce Back Loan (BBL) recipients will find this scheme especially relevant, as these loans made up much of the pandemic support. The programme also applies to other major schemes like the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The amnesty sends a clear warning to defaulters. People who don’t use this window may face tough enforcement actions when new investigatory powers take effect in 2026.

How to Review and Repay Responsibly

The amnesty window is now open, and you need to check your Covid support payments quickly. Start by reviewing all funding you received from support schemes during 2020-2021.

The process becomes simple when you need to repay funds you shouldn’t have received. Start collecting all your Covid support records, which should include:

1.       The exact schemes you accessed (CJRS, SEISS, business grants)

2.       Amounts received and dates of payments

3.       Evidence that supported your original claims

4.       Changes that might have affected your eligibility

Your review will help determine the right repayment channel. Each scheme needs a specific repayment method:

·         For CJRS (furlough): Use the HMRC online service to get a payment reference number

·         For SEISS grants: Access the digital disclosure service using your Government Gateway credentials

·         For Bounce Back Loans: Contact your original lender directly

·         For business support grants: Email  [email protected]

A professional tax advisor can help you make better decisions about your situation.to get personalised guidance through this process. Book a free consultation with our tax specialists.

Key Takeaways

The Covid Repayment Amnesty offers a crucial final opportunity to address pandemic support irregularities before enhanced enforcement begins in 2026.

• Act before December 2025: This voluntary repayment scheme closes in December 2025, after which tougher sanctions and prosecution may follow for non-compliance.

• Review all Covid support received: systematically examine furlough payments, business grants, Bounce Back Loans, and SEISS claims from 2020-2021 for potential overpayments.

• Use scheme-specific repayment channels:Contact original lenders for BBLs, use HMRC online services for CJRS, and use dedicated email addresses for business grants.

• Seek professional guidance if uncertain: Consult tax specialists to navigate complex eligibility criteria and ensure proper compliance with repayment procedures.

• Understand the stakes: With £10 billion lost to pandemic fraud and only £1.54 billion recovered, the government is intensifying enforcement efforts significantly.

This amnesty represents more than just debt collection—it’s your last chance to resolve uncertainties without facing the full weight of enhanced investigatory powers coming in 2026. The government’s position is clear: voluntary disclosure now protects you from potentially severe consequences later.

Conclusion

The Covid Repayment Amnesty is a chance for businesses to fix any issues with pandemic support funds they received. This window won’t last forever – it’s your last chance to come clean before the government brings in tougher investigative powers in 2026. You should review your Covid support payments right away.

The government has already gotten back £1.54 billion. However, much of the estimated £10 billion lost to pandemic fraud and waste still needs recovery. This amnesty gives you a simple way to sort things out without facing immediate penalties. All the same, this flexible approach ends in December 2025, and the consequences after that are nowhere near as forgiving.

Professional guidance can be a great way to get help if you’re not sure about your situation. To get advice that fits your specific case and meets all requirements. Book a free consultation with our tax specialists.

Note that this amnesty isn’t just about enforcement – it’s a chance to clear up any doubts you might have. This applies to Bounce Back Loans, furlough payments, and business grants. Dealing with potential problems now instead of later gives you peace of mind and shields you from future issues. The government’s message is crystal clear: use this window now or face serious consequences when tougher powers arrive next year.

FAQs Related to Covid Repayment Amnesty

Q1. What is the Covid Repayment Amnesty and when does it end?

The Covid Repayment Amnesty is a voluntary scheme allowing individuals and businesses to repay any Covid-era financial support they weren’t entitled to or didn’t need. It runs from September 12, 2025, until December 2025.

Q2. Which Covid support schemes are covered by this amnesty?

The amnesty covers all Covid financial support programmes, including the Bounce Back Loan Scheme, Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme, and various business grants.

Q3. How can I repay funds if I think I received more than I should have?

 The repayment method varies depending on the scheme. For Bounce Back Loans, contact your original lender. For other schemes, use dedicated email addresses or online services provided by HMRC.

Q4. What are the consequences of not using this amnesty?

 Those who don’t take advantage of this opportunity could face serious consequences after December 2025, including prosecution, director disqualification, compensation orders, or even prison sentences.

Q5. Should I seek professional advice before making a repayment?

Yes, it’s advisable to consult with professional tax advisors to review your specific circumstances and receive tailored guidance through the repayment process.

Tax Benefits For Employees That Are Work From Home

Posted on by Rana Zubair

Where possible staff members are work from home during COVID 19 and businesses are providing them with necessary equipment and tools to do their work. There is a confusion as to if this equipment give rise to taxable benefit for employee.

An employee “fringe benefit” is a form of pay other than money for the performance of services by employees. Any fringe benefit provided to an employee is taxable income for that person unless the tax law specifically excludes it from taxation.

Where an employer, in consultation with their employee, judges an employee can carry out their normal duties from home they should do so. Public sector employees working in essential services, including education settings, should continue to go into work where necessary.

Anyone else who cannot work from home should go to their place of work. Following COVID-19 secure guidelines closely can substantially reduce the risk of transmission. Give extra consideration to people at higher risk.

Below is a summary of the key expenses:

Mobile phones and SIM cards

  • One mobile phone and a SIM card does not bring a taxable benefit for an employee.

Broadband

  • If the employee already pays for broadband, that is taxable benefit for employee.

Laptops, tablets, computers, and office supplies

  • If these are mainly used for business purposes and not major private use, these are non-taxable benefit for employee.

You can look at the UK Government guidance by clicking here

If you have any questions; feel free to contact us or Telephone: 020 3883 4777

or Rana Zubair at Apex Accountants and Tax Advisors

No VAT For Certain Healthcare Professionals

Posted on by Rana Zubair

HMRC has recently announced that from 1st April 2020, services provided by certain healthcare professionals will be treated at zero rate for VAT. The list of “relevant practitioners” now includes qualified prescribers and practitioners.

Just to further clarify, the “relevant practitioners” also include:

  • community practitioner nurse prescribers
  • nurse independent prescribers
  • optometrists
  • independent prescribers
  • The pharmacist independent prescribers
  • The physiotherapist independent prescribers
  • The podiatrist independent prescribers
  • supplementary prescribers, as defined in article 1(2) of the Prescription Only Medicines (Human Use) Order 1997(a)
  • EA health professionals as defined in section 213 of the Human Medicines Regulations 2012

The Services that are not exempt from VAT

The following services are taxable at the standard rate:

  • health services not performed by an appropriately qualified and registered health professional, except when either directly supervised by such a person or provided within a hospital or within other state-regulated institutions providing healthcare
  • services not aimed at the prevention, diagnosis, treatment or cure of a disease or the  health disorder, such as paternity testing and the writing of articles for journals
  • services directly supervised by a pharmacist
  • general administrative services such as countersigning passport applications and providing character references
  • Health professional staff supplies are subject to VAT, except when they are exempt under the nursing agencies’ concession.

If you are a health professional registered on the appropriate statutory register, such as a medical practitioner, dentist, nurse, osteopath, dietitian, etc., and ALL of the services that you provide to your patients pass HMRC’s second test for medical services, you are exempt from registration for VAT.

Next Step:

If you are looking to know more about VAT exemptions, please feel free to Book a free consultation now.

Five Things To Plan And Do Now

Posted on by Rana Zubair

Here is a list of five things that you. As a business owner, need to be aware of and plan right now!

  1. Control over cash flow / Arrangements with a lender
    Be sure that you look after your cash flow and if you anticipate problems. Arrange with lenders that would be able to help you with financing.
  2. Supply chain availability
    Due to COVID 19 supply chains across the world are disturbed for most of the products and services. Make sure you are aware of any impact on your business and can put alternative supply chains in place if needed.
  3. Health & safety
    You need to ensure that your business has new health & safety policies and procedures in place. Also, be mindful that this could be at an additional cost that you have not included in your budget.
  4. Working from home
    Since most of the staff would be working from home for the foreseeable future; the businesses should ensure they have good & reliable systems is in place to make this happen. Working from home for a more extended period ultimately means that the staff should receive training and support to work independently. Ensuring they have the software and equipment they need might also influence your budget.
  5. Tax and Business Cost efficiency:
    As we are expecting to a severe downturn in the economy; it is crucial for the success of a business that they have achieved tax and cost efficiency to gain maximum profits.

These are Five things Need

To help businesses, we are providing a service to review if they are an optimum level of cost and tax level.

If you have any questions; feel free to contact us or Telephone: 020 3883 4777

Bad Debt Relief For VAT Filers

Posted on by Rana Zubair

Bad Debt Relief For VAT Filers

While we are under a severe economic condition and there is a risk that some businesses might not pay their suppliers.

There are rules available where a business can claim relief where a customer does not pay.

Background:

The bad debt relief rules are intended to ensure that VAT is not a cost to a business that suffers a bad debt following non-payment by customers.

Those businesses which are under the Cash Accounting Scheme, they avail bad debt relief automatically.

At the same time, such businesses have a disadvantage that they can’t claim input on purchase invoices until they have paid to suppliers.

How it works:

A business can claim bad debt relief on a VAT return (positive entry in Box 4) when ALL the following conditions are met:

  • The sales invoice in question is more than six months overdue for payment;
  • The invoice has been written off in the business’s accounting records;
  • Output tax must have been paid to HMRC on a past VAT return;
  • The debt must not have been sold, factored or paid under a valid legal assignment.

The latest time a claim can be made in four years and six months after the later of:

  • The time of supply (usually the invoice date); or
  • The due date for payment.

If an invoice is written off and bad debt relief has been claimed, then output tax must be declared on any payment subsequently received from the customer (HMRC notice 700/18 para 2.2).

If you have any question on the VAT issues; feel free to contact us

Financial Assistance By Local Council – Grants

Posted on by Rana Zubair

e Financial Assistance By Local Council – Grants

The government has announced two major incentives for local businesses affected by the coronavirus: a business rates holiday for the year 2020-21 and cash grants for small businesses. Local Councils or Authorities will deliver the grants to eligible businesses within their boroughs.

There are two types of grants funding schemes:

• the Small Business Grant Fund (SBGF)
• the Retail, Hospitality and Leisure Grant Fund (RHLG).

Summary of available Grants:

Scheme Small Business Grant Fund (SBGF) Retail, Hospitality and Leisure Grant Fund (RHLG)
Available to:
All businesses in England in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR) in the business rates system Businesses in England in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) with a rateable value of less than £51,000
How much
£10,000 £10,000

for premises with a rateable value of up to £15,000
£25,000

for premises with a rateable value of over £15,000 and less than £51,000
Eligibility criteria
Premises which on the 11 March 2020 were eligible for relief under the business rate Small Business Rate Relief Scheme (including those with a Rateable Value between £12,000 and

£15,000 which receive tapered relief)

 Premises which on the 11 March 2020 had a rateable value of less than £51,000 and would have been eligible for a discount under the business rates Expanded Retail Discount Scheme
Premises which on 11 March 2020 were eligible for relief under the rural rate relief scheme
Exclusions
Premises that were not eligible for percentage SBRR relief (including those eligible for the Small Business Rate Multiplier) Premises with a rateable value of over £51,000
 

Premises occupied for personal uses, e.g. private stables and loose boxes, beach huts and moorings

  

These aroccupied for personal uses, e.g. private stables and loose boxes, beach huts and moorings
Car parks and parking spaces Car parks and parking spaces
Businesses which as of the 11 March were in liquation or were dissolved Businesses which as of the 11 March were in liquation or were dissolved

This post contains information published by the ACCA and the UK Government.

Coronavirus Job Retention Scheme

Posted on by Rana Zubair

Coronavirus Job Retention Scheme

How much you’ll get
Your employer will get a grant to cover 80% of your monthly earnings, up to a maximum of £2,500.
Firms will be eligible for the grant once you have been furloughed, from 1 March.

Your employer

  • will pay you at least 80% of your usual monthly earnings, up to a maximum of £2,500, as your wage
  • can claim for a minimum of 3 weeks and for up to 3 months – but this may be extended
  • can choose to pay you more than the grant – but they do not have to

You’ll still pay Income Tax, National Insurance contributions and any other deductions from your wage.

If you are concerned that your employer is not paying you what you are entitled to, then you should raise this with your employer in the first instance, then with Acas (Advisory, Conciliation and Arbitration Service).

How your monthly earnings are calculated

If you’ve been employed (or engaged by an employment business in the case of agency workers) for a full year, employers will claim for the higher of either:

  • the amount you earned in the same month last year
  • an average of your monthly earnings from the last year

If you’ve been employed for less than a year, employers will claim for an average of your monthly earnings since you started work. The same arrangements apply if your monthly pay varies, such as if you are on a zero-hour contract.

If you started work in February 2020, your employer will pro-rata your earnings from that month.

Bonuses, commissions and fees are not included as part of your monthly earnings.

More information are available from the Government website about Coronavirus Job Retention Scheme

HMRC Phone Line For Help

Posted on by Rana Zubair

For those who are unable to pay due to corona-virus, HMRC will discuss your specific circumstances to explore, including the following:

  • agreeing on an installment arrangement
  • suspending debt collection proceedings
  • cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

The helpline number is 0800 024 1222 – and is an addition to other phone contact numbers.

Opening hours are Monday to Friday from 8 am to 4 pm.

We are the UK’s tax, payments and customs authority, and we have a vital purpose. We collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.

Apex Accountants do this by being impartial and increasingly effective and efficient in our administration. We help the honest majority to get their tax right and make it hard for the dishonest minority to cheat the system.

HMRC is a non-ministerial department, supported by 2 agencies and public bodies.

More information is available on the HMRC website

 

What do HMRC deal with?
The term Her Majesty’s Revenue and Customs (HMRC) refers to the tax authority of the U.K. government. The agency, also known as Her Majesty’s Revenue Services, is responsible for collecting taxes, paying child benefits, enforcing tax and customs laws, and enforcing the payment of minimum wage by employers.

Self-Employment Income Support Scheme From HMRC

Posted on by Rana Zubair

Self-Employment Income Support Scheme From HMRC

As per the Government’s announcement, the scheme will allow self-employed to claim a taxable grant worth 80% (the same percentage as announced for employees) of trading profits up to a maximum of £2,500 per month (same amount as announced for employees) for the next three months. This may be extended if needed.

Who is eligible:
The Self-employed individual or a member of a partnership and those:

  • Who has submitted Income Tax Self-Assessment tax return for the tax year 2018-19; (HMRC has given time to file a tax return to those who have not filed for 2018/19)
  • Traded in the tax year 2019-20
  • Are trading at the time of application or would be except for the COVID-19
  • Intend to continue to trade in the tax year 2020-21
  • Have lost trading/partnership trading profits due to the COVID-19

To be eligible self-employed trading profits must also be less than £50,000 and more than half of the income comes from self-employment.
This is determined by at least ONE of the following conditions being true:
Trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of the total taxable income
Average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
For those who have less than three years’ self-assessment, the average income will be calculated accordingly.

More information are available from the Government website

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