Two people have been arrested over a suspected £3.4m furlough scheme fraud.
Furlough Fraud | Rosenblatt’s Financial Crime Team
A man, 35 and a woman, 36 from Bradford were interviewed in relation to a suspected multi-million-pound tax fraud. HM Revenues & Customs (HMRC) have frozen more than £6m held in bank accounts controlled by the pair. This 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.
The Coronavirus Job Retention Scheme (CJRS), often referred to as the furlough scheme was introduced in March 2020 and pays 80% of employees’ wages for the hours they cannot work in the COVID-19 pandemic. At the March Budget 2021 the Chancellor, Rishi Sunak, announced that the furlough scheme would be extended to the end of September 2021, however employers will be expected to pay 10% towards the hours their staff do in July, with this contribution increasing to 20% in August and September as the economy reopens.
The government also announced in March that it would invest £100m in a Taxpayer Protection Taskforce to combat fraud linked to COVID-19 support measures. Janet Alexander, director of this taskforce believes most employers are using the furlough scheme responsibly. However, she notes, “we will not hesitate to act on reports of abuse of the scheme or any HMRC-administered COVID-19 support packages.” She continues, “as usual we have built steps into CJRS to prevent mistakes and fraud happening in the first place. But anyone who is concerned that their employer might be abusing the scheme should report it to HMRC online or call 0800 788 887.”
As referenced by Ms Alexander above, there is now a dedicated way to report COVID-19 related fraud to HMRC. By visiting the government’s website, individuals can click ‘Report HMRC-administered COVID-19 relief scheme fraud’. This will direct them to a page where they will be asked to file in HMRC’s ‘Fraud Hotline’ form with as much detail as possible about the alleged fraud.
It is likely that we will continue to see more cases of this nature in the coming months.
You can read our earlier article looking at furlough fraud with regard businesses repaying £760m claimed through the CJRS here.
Rosenblatt can help
Rosenblatt has a wealth of experience in criminal law and is uniquely placed to support client’s crime needs during these unprecedented times, consistently ensuring a familiarity with the ever-changing government guidance on COVID-19.
https://www.rosenblatt-law.co.uk/services/financial-crime/#financial-crime
