What happens if I do not get refunded for putting my staff on furlough?

Affected by Covid-19? Immediate Rescue Or Closure Options Available

FAST Free Director Advice & Support, With 100+ offices Nationwide our Licensed Insolvency Practitioners can Help Today.

Updated: 3rd March 2021

The government’s pledge to help businesses overcome the challenges posed by Covid-19 resulted in a comprehensive support package being announced including measures to help business owners, sole traders, and employees alike.

What is the Coronavirus Job Retention Scheme?

One of the most significant of these was the Coronavirus Job Retention Scheme. The scheme funds 80% of an employee’s wage - up to a maximum of £2,500 a month - in the event that they are furloughed. The idea behind this initiative was to prevent mass redundancies as businesses were forced to close their doors amid coronavirus lockdown measures. The scheme has been extended until the end of September 2021.

One of the main sticking points for businesses is that some have been required to make payment to their staff before retrospectively claiming back this money through the government’s Coronavirus Job Retention Scheme. This therefore requires businesses not only to have this money available to make the payment in the first place, but also to have faith that the money will be reimbursed as promised and in a timely manner.

Demand for the scheme has been huge as businesses up and down the country temporarily laid off staff to help preserve funds and put their company in the best position possible to survive this unprecedented crisis. Over 140,000 businesses applied in the first seven hours when the scheme opened on 20 April.

What can I do if I do not get the furlough reimbursement or if it is delayed?

If the furlough reimbursement is delayed or doesn’t materialise at all, or if your business simply needs additional funds to help you weather the storm, there are options available to you.

You may wish to consider introducing a form of emergency finance into the business. This could take the form of a traditional loan or more specialised forms of funding such as invoice or asset-based lending. when introducing funds into a business, particularly during challenging times, it is always advisable to seek the assistance of a commercial finance expert such as UK Business Finance, who will not only advise on the most appropriate funding channel based on your needs, but will also be able to scour the market to source the finance in the most cost-effective way possible.

  • Low-cost Finance for UK Businesses
  • Funding 1,000+ Limited Companies Since 1989
  • Broad Range of Financial Products
Visit UK Business Finance
Refused a CBILs or Bounce Back Loan?
Alternative Finance Options Available

Alternative options to help your business

Alternatively, you may be able to free up some cash by negotiating with your existing creditors in order to lower your monthly outgoings. Depending on your level of debt, and the relationships you have with your creditors, you may be able to do this through informal discussions; however, for more serious situations a formal process known as a Company Voluntary Arrangement (CVA) may be more appropriate. A CVA is a legally-binding arrangement which gives you the opportunity of paying off your debts over a set period of typically 3-5 years. A portion of your debt may also be written off as part of the process depending on what you can afford to pay back.  

If your main creditor is HMRC, you may be able to arrange a Time to Pay (TTP) agreement which allows you to pay your tax arrears through a series of affordable monthly instalments. You may also wish to consider placing the company into administration, particularly if you are being threatened with legal action from creditors.

  • Negotiating with HMRC for 35 Years
  • 1000’s Successful TTP Arrangements
  • Full Support from Start to Finish
Visit Time To Pay Experts
Expert HMRC Time To Pay Support
60 Second Online Assessment Available

How Real Business Rescue can help

The challenges being faced by businesses across the country are unparalleled and it can be difficult to know what to do or where to turn to for help. At Real Business Rescue, we have a nationwide team of licensed insolvency practitioners and business turnaround experts who are here to provide you with the help and guidance you need.

We can talk you through a range of business rescue and recovery processes, as well as pointing you in the right direction for sourcing emergency finance or negotiating with HMRC. Call our advisers today on 0800 644 6080 to arrange a free consultation with your local Real Business Rescue expert.

Keith Tully


0800 644 6080
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY