Covid repayment window opens – time to come clean

The Government has opened a voluntary repayment scheme for anyone who may have wrongly claimed or received COVID-19 financial support. The scheme allows individuals and businesses to return funds by Tuesday, 31 December 2025, with no questions asked.

The scheme covers all pandemic-related support, including:

• Loans
• Grants
• Tax benefits
• Social security payments

This is a clear opportunity for businesses or individuals who now realise they shouldn’t have received the money – or kept it – to put things right before further scrutiny begins.

Why act now?

From 2026, the Government will have broader powers to investigate suspected fraud linked to COVID-19 schemes. Those who choose not to repay voluntarily could face civil recovery, fines, or even criminal prosecution.

The message is clear: repay now and avoid potentially severe consequences later.

What if you're already in insolvency?

The Insolvency Service has confirmed that voluntary repayments won’t protect directors from enforcement action if their company enters an insolvency process. Insolvency practitioners are still required to report any suspected misconduct as usual, regardless of whether repayments are made.

If you’re a director of a company that’s struggling, or you’ve received COVID-19 support you’re unsure about, don’t ignore it. Even if you're considering voluntary repayment, other responsibilities and liabilities may still need to be addressed – especially if your business is facing insolvency.

What should you do?

If you or your business received COVID-19 support and you’re unsure whether you were eligible, or if you now think you may need to repay some or all of it, get advice as soon as possible.

At Larking Gowen, our Insolvency & Recovery team can help you:

• Review COVID-19 support received
• Understand your personal and director responsibilities
• Consider your options for voluntary repayment
• Plan a way forward if your business is in distress or facing insolvency

We take a fair, supportive and practical approach. The earlier you talk to us, the more options you’re likely to have.

Need help?

If you’re worried about past COVID-19 claims or facing financial pressure, don’t leave it too late. The voluntary repayment scheme is a chance to act now and reduce risk.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk

Lee Green