A new “no questions asked” repayment window
When the government rolled out emergency support during the COVID-19 pandemic, speed was the priority. Schemes like the Coronavirus Job Retention Scheme (CJRS), Self-Employed Income Support Scheme (SEISS), Bounce Back Loans, CBILS, local authority business grants, and Eat Out to Help Out were essential lifelines. But in the rush, mistakes, overclaims and even fraud inevitably crept in.
Now, with the crisis behind us, the government has turned its attention to recovering some of that money. Estimates suggest more than £10 billion may have been wrongly paid. The Voluntary Repayment Scheme, announced in September 2025, offers a final opportunity to repay funds voluntarily before stricter measures come into force.
Why now?
The Cabinet Office has described the scheme as a “last chance” to settle potential liabilities. By December 2025 the window will close, and from 2026 the focus will shift towards investigations, enforcement and recovery through legal action.
For recipients of COVID-19 funding, this represents a clear choice: repay voluntarily now and draw a line under the matter, or risk being targeted later when penalties and reputational consequences may be far greater.
How it works
Repaying is straightforward. You can visit the official GOV.UK guidance and select the scheme you want to repay under. If the scheme you received is not listed, you can email voluntaryrepayment@cabinetoffice.gov.uk with the details, and the team aims to respond within five working days.
Payments are then processed depending on the scheme. Whether you are repaying a furlough grant, SEISS support, or a local authority grant, the system is designed to keep things simple and confidential.
Who should consider repayment?
This scheme is not mandatory, but it is particularly relevant for:
- Business owners and directors who claimed support during the pandemic.
- Sole traders or partners who accessed SEISS or local grants.
- Anyone who believes part of their claim may have been excessive, or whose circumstances changed and left them with support they did not truly need.
For directors, the decision carries added weight. If a business is later found to have retained money improperly, directors could face reputational damage or even regulatory action. Using the voluntary scheme demonstrates good governance and reduces that risk.
The deadline is critical
The repayment window is only open until December 2025. While the government has not specified an exact cut-off date, the message is clear: after December, the opportunity to repay without investigation will vanish. At that point, HMRC and enforcement agencies will escalate their recovery programmes, and any repayment may come with penalties, interest, or worse.
What happens if you do nothing?
If you simply keep funds that you believe were wrongly claimed, the risk is high. After the deadline, the government will have stronger powers to investigate and recover funds. This could include:
- Civil penalties and repayment with interest.
- Criminal investigations in serious cases.
- Director disqualification or reputational harm.
By contrast, voluntary repayment before December ensures the matter is closed without consequences.
Taking action now
The safest course of action is to review your claims from 2020–2021 and assess whether you retained any money that should be returned. Even if you are unsure, it may be worth seeking professional advice.
At UWM Accountants, we can help you decide if you need to take any action.
