The COVID Repayment Scheme

The Government has launched a Covid Repayment Scheme whereby businesses and individuals can repay money borrowed during the Covid-19 pandemic without “any questions asked”.

The Covid Repayment Scheme provides businesses and individuals who borrowed funds under a Covid scheme, in circumstances where they were not entitled to the funds or borrowed more than they needed, an opportunity to repay those sums before investigations begin.

Individuals and businesses now have until December 2025 to take advantage of this scheme and voluntarily repay what is due. For those who don’t, the Government has announced that it is going to do everything in its power to recoup the £10 billion it estimates was lost through Covid-related fraud. Tougher sanctions are therefore expected to be introduced in 2026 and will include civil claims, compensation orders, direction disqualification proceedings and criminal prosecution. It is therefore extremely important for individuals and businesses to try and resolve their liability now.

See ‘Covid repayment window opens‘ for the announcement made on 12 September 2025.

What payments does this apply to?

The Scheme applies to any individual or business that received financial support during the Covid-19 pandemic either fraudulently or in error. It applies to all Covid-related schemes, including:

• Coronavirus Job Retention Scheme
• Eat Out to Help Out Scheme
• Self-Employed Income Support Scheme
• Covid-19 Business Loan Guarantee Schemes, e.g. Bounce Back Loan.

How Ashtons Legal can help

At Ashtons Legal, we have seen and assisted many individuals and businesses that accessed financial support during the Covid-19 pandemic and are now facing financial distress, and we have advised many directors who face scrutiny and the risk of disqualification as a result. In our experience, this scheme is particularly important for those individuals, whether acting personally or on behalf of a business, who misunderstood the eligibility criteria when they applied for financial support, or who have concerns that the support was wrongly claimed, retained or used.

Contact our insolvency solicitors today

If you or your business received financial support from a Covid scheme and you are unsure about your repayment obligations, Ashtons Legal LLP’s Insolvency and Restructuring team is here to help. Please contact our dedicated insolvency and corporate recovery team by calling 0330 404 0767 or complete our online enquiry form.

We recommend seeking legal advice at the earliest opportunity, as the amnesty will expire in December 2025.