If you misused a bounce back loan or other pandemic support, the government’s COVID voluntary repayment scheme offers a final opportunity to put things right—without facing investigation or prosecution. Chris Worden explains what you need to know.
- COVID voluntary repayment scheme open until December 2025
- Repay misused bounce back loans, CBILS, furlough, or SEISS grants
- No questions asked if repaid in time—no investigation or prosecution
- After deadline, enforcement powers and penalties increase
- Partial repayments or payment plans may be accepted
- Speak to your bank if you can’t repay in full
What is the COVID Voluntary Repayment Scheme?
The scheme allows directors and businesses who wrongly claimed pandemic support—such as bounce back loans, CBILS, furlough, or SEISS grants—to repay what they shouldn’t have received. If you do so by December 2025, you avoid criminal investigation, public naming, or prosecution.
Why is the Government Offering This?
With over £10 billion lost to pandemic fraud, the government wants to recover as much as possible before new enforcement powers go live. The scheme is aimed at genuine directors who made mistakes under pressure, not hardened fraudsters.
What Happens After the Deadline?
- New enforcement powers allow recovery for up to 12 years
- HMRC and the Cabinet Office can seize funds directly from bank accounts
- Automated data-matching will identify misuse
- Expect more director bans, compensation orders, and prosecutions
What If I Can’t Repay in Full?
If you can’t repay the full amount, speak to your bank. Payment plans or partial settlements may be possible. Chris Worden advises that being in an arrangement to repay is better than ignoring the issue.
Key Takeaways
- This is a one-time chance to settle misused pandemic loans or grants
- Repay by December 2025 to avoid severe consequences
- Partial repayments or payment plans are options—contact your bank
- After the deadline, enforcement will be tougher and more automated
- Chris Worden and Director First have helped hundreds in similar situations
Frequently Asked Questions
- What is the COVID voluntary repayment scheme?
- It’s a government scheme allowing you to repay misused pandemic support by December 2025 without facing investigation or prosecution.
- Which loans and grants are covered?
- Bounce back loans, CBILS, furlough, and SEISS grants are all included.
- What happens if I miss the deadline?
- You could face investigation, prosecution, director bans, and direct recovery from your bank accounts.
- Can I arrange a payment plan if I can’t pay in full?
- Yes, you can speak to your bank to arrange a payment plan or partial settlement.
- Will repaying under the scheme admit guilt?
- No, repaying under the scheme closes the matter with no admission of guilt or further consequences.
