Case in Focus – Furlough Fraud

scale of justice

Two people have been arrested over a suspected £3.4m furlough scheme fraud. A man, 35 and a woman, 36 both from Bradford were interviewed in relation to a suspected multi-million-pound tax fraud. As a result, HM Revenues & Customs (HMRC) have frozen more than £6m held in bank accounts controlled by the pair. This action comes after HMRC’s Taxpayer Protection Taskforce officers executed a search warrant at their premises on 28 April 2021. Both individuals were held on suspicion of cheating HMRC, VAT evasion and money laundering. They have now been released under investigation. Unfortunately, this is not the only case of its kind and there have been many people who have sought to benefit from the help given by the government.

Take-away points

  • As a result of furlough fraud, the government announced in March that it would invest £100m in a Taxpayer Protection Taskforce to combat fraud linked to COVID-19 support measures.
  • The majority of employers have used the furlough scheme responsibly in the hope to retain employees and maintain their businesses.
  • There is a dedicated place now to report Coronavirus related fraud to HMRC, by clicking this link: Report fraud to HMRC – GOV.UK (www.gov.uk) and clicking `Report HMRC-administered Coronavirus (COVID-19) relief scheme fraud.

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Posted in Blog, Covid-19, HR Covid-19.