In SWG Polymer Services Ltd v HMRC [2025] TC09398, the First Tier Tribunal (FTT) found that Coronavirus Job Retention Scheme (CJRS) payments made whilst an employee was still working were invalid and should have been repaid to HMRC.

Corona virus

HMRC issued assessments to recover Coronavirus Job Retention Scheme (CJRS) payments totalling £5,977.38 from SWG Polymer Services Ltd (SPSL) in respect of claims which purported to be for periods before lockdown and further periods when the relevant employees had not been furloughed. 

  • Mr Glasby was the director of SPSL. His wife and daughter-in-law were also employees of the company.
  • The company provided services repairing and maintaining injection moulding machines.

Mr Glasby made claims for CJRS for three periods when HMRC did not believe the relevant employees to be furloughed. The periods consisted of:

  • A period in March 2020, which predated lockdown.
  • From March 2020 to June 2020, when Mr Glasby (for whom a claim was made) was still working for the company.
  • A period from July 2020 to October 2020. During this period, claimants could get payments for periods where they were partly furloughed. Since Mr Glasby had not been furloughed in the previous periods, this claim was invalid.

Although Mr Glasby accepted the claims were overpaid and should have been repaid on SPS's 2021 Corporation Tax return, he raised the issue that HMRC’s guidance on the matter was inadequate.

The First Tier Tribunal (FTT) found that:

  • Mr Glasby continued to provide services to clients throughout the pandemic, working remotely.
  • Despite claims being made in early March for both Mr Galsby and his wife, his wife did not begin working for the company until early July.
  • It was a fact that Mr Glasby did continue to work and therefore did not meet the conditions of the furlough legislation which stated employees ‘had to cease all work in relation to their employment’.
  • Mr Glasby did not meet the requirements to be flexi-furloughed during the third period.

The appeal was dismissed.

Useful guides on this topic

Essential know how
This section is for directors and is full of tax planning guides and tips & tools together with tax compliance checklists and our regular CPD updates. 

Directors responsibilities and duties
What duties and responsibilities does a director have? What is the definition of 'director'?

CJRS (to 30 September 2021) 
What is CJRS? When does the CJRS apply? How to claim CJRS. How to calculate CJRS claim amounts. 

External link

SWG Polymer Services Ltd v HMRC [2025] TC09398

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