HMRC

HMRC’s draft legislation shows ambition to tackle furlough scheme frauds – but money overpaid to employers will likely be difficult to regain

Dishonestly taking public money from the £100bn job retention scheme could result in an investigation and a prison sentence – yet research indicates abuse is rampant. Now HMRC is seeking to crack down on the fraudsters.

https://www.independent.co.uk/news/business/analysis-and-features/furlough-fraud-job-retention-scheme-abuse-hmrc-crackdown-a9563561.html

Legislation is being rushed through Parliament to introduce employer penalties for furlough fraud.

https://uk.finance.yahoo.com/news/coronavirus-employers-to-be-given-30-days-to-admit-to-furlough-fraud-102459788.html?soc_src=social-sh&soc_trk=tw&guccounter=1&guce_referrer=aHR0cHM6Ly90LmNvL1U5UVQ2c3NmZTM_YW1wPTE&guce_referrer_sig=AQAAAL4i6VNpM0AStwCqAqQXjNkWSP0O6LnHL7atiNxlSWyj_h-57gP3YxOjWzukdQfvKwh9TtnJmHukg43LIRtqpyTgcu3-poDdXQlNaORPXGjracZJQBzlnHvuHUwq8AJbdvof5f5LZPdAuivPC3GZJHI0TvT2NxaKVbl228WKGE4o

A company director has been jailed for fraudulently avoiding around £100,000 in tax.

HM Revenue & Customs has warned it will impose a penalty on directors who deliberately flout the rules of the government's coronavirus furlough scheme. 

HMRC said it will now be ‘assessing’ these cases in line with its usual procedures.

Scammers are targeting those signing up to the Self-Employment Income Support Scheme by falsely claiming their grant has been approved.

https://www.lovemoney.com/news/96029/hmrc-grant-scam-fake-tax-mails-claims-self-employment-income-support?mc_cid=866722e370&mc_eid=d48711f7ed&source=1000693

The COVID-19 crisis presents fraudsters with a ripe opportunity to defraud businesses at a time when finances are tight, attention and resources are focused elsewhere, key staff may be absent and financial controls are under pressure. One of the simplest and most devastatingly effective of these frauds is a push payment fraud.

https://insightplus.bakermckenzie.com/bm/resilience-recovery-renewal/united-kingdom-warning-push-payment-fraud-how-to-spot-it-how-to-stop-it-covid-19?utm_source=twitter&utm_medium=social

UK employers who are furloughing staff as a result of the coronavirus pandemic could face a criminal investigation from HM Revenue and Customs (HMRC) if they are dishonestly claiming under the coronavirus job retention scheme whilst simultaneously requiring employees to work.

https://www.pinsentmasons.com/out-law/analysis/criminal-investigation-risk-furloughing-staff

HM Revenue & Customs is not renowned for its generosity. However, in circumstances where the department comes across suspected tax evasion, it can offer immunity from prosecution for tax offences in exchange for a full and accurate disclosure of any tax irregularities.

https://www.ftadviser.com/your-industry/2020/05/13/beware-hmrc-bearing-gifts/