HMRC has released Insolvency Guidance which confirms that claims relating to the Coronavirus Job Retention Scheme (CJRS) which have been rejected because the claimant is in arrears with their tax liabilities, should not have been rejected.

HMRC has been notified that there have been instances where claims relating to the CJRS have been rejected because the employer submitting the claim was in arrears with some of their tax liabilities.

HMRC has apologised and stated that this should not have happened.

The instruction for any employers who have had their claim rejected is to re-apply. Relevant guidance has been updated, and HMRC staff have been informed, to ensure that this situation does not arise again.