The tax office said businesses will not be able to claim furlough cash in future unless they reimburse the backlog of income taxes and national insurance payments.
Businesses that owe more than nine months of back payments to HMRC were the target of the letter campaign.
The furlough scheme requires companies to pay associated employee taxes and national insurance contributions when they make claims. Other debts do not impact a firm’s ability to tap into the support available, HMRC said.
‘Ensure employers pay the correct tax’
According to the Financial Times, a government official briefed on the matter said while at the start of the pandemic providing immediate help to those who needed it was the priority, that has shifted over time.
“As we now move through the pandemic, it is only right that we continue to ensure employers pay the correct employee tax and national insurance contributions they agreed to pay when applying for the grant,” the official said.
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