I am preparing a set of accounts to 31 October 2020 for a client who is an engineer, having seen his VAT returns and his bank statements for the first time, it is clear that he has been active in the periods where he has previously stated that he was furloughed. The activity isn't a lot, but even so, the March to June claims are clearly incorrect. He has also claimed full furlough for July to October, despite at least a small amount of activity.
The client does seem to be an honest type of person, and I imagine that the activity is just him pottering about whilst lockedown at home given that he's an engineer. Strictly, he should repay all of the furlough for March to June, and some of the furlough from July to Oct, and if he doesn't agree to this I guess it's an AML report? I would be interested to hear other peoples thoughts.
Too immaterial to worry about? It's fair for him to claim it given the lockdown that's been imposed on his business? My feeling is that it is not.
I imagine that a number of accountant's are going to have this problem this year.