Furlough Fraud – are you in HMRC’s sights?
During Covid, the government made it quite easy for businesses to access cash to support them during the pandemic. This came in various guises including bounce-back loans, self-employed grants, the Eat Out to Help Out scheme and assistance in meeting employee wages through the furlough scheme. Some might say it was just too easy to make claims under the Coronavirus Job Retention scheme or CJRS, or the furlough scheme as it was known.
HMRC themselves admit that during the panic and confusion existing during Covid, there was an urgency and hardship across the business world, largely through no fault of their own, so they operated on the basis of ‘payout now and check later’ and it seems that these checks have now come along to bite much later, in 2025!
The furlough scheme came in April 2020 so why are we still talking about it? Well, that’s because HMRC are now tackling the fraud involved in handing out that free money under the furlough claims and allegedly it appears to be widespread. They are able to access a lot of facts and figures internally, but much of the information in their possession has come from thousands of whistleblowers and tip-offs from sources such as disgruntled or unwilling employees dragged into the false claims or competitors.
As an alternative to a lengthy criminal prosecution process, HMRC are willing to accept those involved in the submission of false and excessive furlough claims onto their Code of Practice 9 process. They are currently issuing Code of Practice 9 letters to those that they believe have been involved in fraudulent furlough claims.
However, you can however enter this process voluntarily and very simply yourself without waiting for that envelope to land on the mat. All it takes is a simple form requesting that HMRC take you on the scheme and they are unlikely to refuse anyone offering to come clean. The COP 9 process is worth its weight in gold for those who are worried that a criminal conviction might be the outcome for them.
Basically, by accepting what is a contract with HMRC, in return for making a full disclosure of all tax errors and agreeing your liabilities, you will be offered immunity from prosecution. It is not a quick process and is one which involves you having to dig deep and declare any tax irregularities covering a maximum of 20 years, but with the help of an experienced specialist advisor, the process can be made, not only clear but seamless for you.
Call us if you feel you have something to declare and may benefit from this process and our invaluable help.
Andy Rusling on 07879 464577 or Lindsay Henson on 07584 706664
