The owner of a boutique beer company says his business is in strife after Inland Revenue's ordered him to pay back Covid support funding.

Avondale business Hopscotch could not open during the pandemic lockdowns. Owner Hugh Grierson got more $46,000 in government Covid support payments including the small business cashflow scheme.

Following an audit he's been forced to pay the money back, with penalities, because Inland Revenue says some was spent incorrectly and incorrect earnings information was used in the application.

Grierson is not alone. Inland Revenue has asked 513 people who received Covid payments to pay back $16.4 million. Hopscotch owner Hugh Grierson talks to Lisa Owen.