Since the scheme launched in April, over 1.2 million employers have applied to the scheme, protecting around 9.6 million jobs during the coronavirus crisis. 

However, it is thought around 24,000 firms (2%) may have claimed more from the scheme than they were entitled to.

The furlough scheme is due to end in October, prompting calls from the SNP and Labour to extend the scheme or risk a huge rise in redundancies across the UK. 

The tax body said it hopes firms which have over-claimed furlough payments will come forward to discuss the error, however, it said it would begin contacting certain businesses immediately.

If firms contact HMRC within 90 days of receiving the money they claimed, and repay it on time, they will avoid penalties, The Times reports.

The over-claims have been discovered based on information held about the company. For example, a firm may have claimed an amount wildly different to the PAYE data submitted in the months prior to the CJRS beginning.

HMRC said it will not seek out “innocent errors and small mistakes for compliance action”. However, the body said it will take action against firms who “deliberately set out to defraud the system or claim money they aren’t entitled to”.

The letter sent to firms in receipt of furlough pay states that they should contact HMRC even if they believe their claim was correct.

The letter reads: “If you do not contact us we may start a formal compliance check. This may mean you have to pay statutory interest and penalties. This may mean you have to pay statutory interest and penalties.”

“We are supporting our customers while tackling serious fraud and criminal attacks. We understand mistakes happen, particularly in these challenging times, and will not seek out innocent errors and small mistakes for compliance action.”