Up to £3.5 billion in furlough payments fraudulent, HMRC finds

09 Sep 2020

HMRC has revealed that almost £3.5 billion in Coronavirus Job Retention Scheme (CJRS) payments have been claimed fraudulently or paid out in error.

HMRC told the Public Accounts Committee (PAC) that it estimates that between 5% and 10% of CJRS funds have been provided in error. According to the PAC, in 2019 £30 billion in tax was lost as a result of taxpayer error and fraud.

HMRC said it intends to target individuals who made fraudulent CJRS claims, rather than penalise employers who made legitimate mistakes in compiling their claims.

Commenting on the issue, Jim Harra, Chief Executive of HMRC, said: 'We have made an assumption for the purposes of our planning that the error and fraud rate in this scheme could be between 5% and 10%. That will range from deliberate fraud through to error.

'Although we will expect employers to check their claims and repay any excess amount, what we will be focusing on is tackling abuse and fraud.'

Home | Contact us | Accessibility | Disclaimer | Help | Site map | Accreditation |

© 2020 DSJ Partners (UK) Limited. All rights reserved. | DSJ Partners (UK) Limited, 2nd Floor, 1 Bell Street, London NW1 5BY

Registered in England & Wales Registration number: 09346452.

Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England & Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C004601804.

In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our Professional Indemnity Insurers are Arch Insurance (UK) Limited. Contact details: 5th Floor, Plantation Place South, 60 Great Tower Street, London EC3R 5AZ. Policy number P0014402PI2019SU0.

We use cookies on this website, you can find more information about cookies here.