Furlough Errors & Fraud – Have HMRC approached you yet?

Remember COVID and how desperate we all were to get back to work and how employers were struggling to make ends meet when their businesses were constantly being shut down and reopened over a long period of time.

We were all faced with furlough claims (a name none of us had ever heard of before), SEISS grants for the self employed , bounce back loans, Eat Out to Help Out schemes and free money was everywhere. Not only were people grateful for the financial help but temptation always reared its head and sometimes people took advantage of these schemes and loans often without  looking into the rules and the consequences. 

Now in 2025 HMRC are reviewing things like the furlough claims to see whether you were really entitled to them. Many letters are going out offering people the chance to settle claims made in error and we have experience in dealing with these. 

Since Covid HMRC have invested millions in training a specialised taskforce to investigate potential fraudulent furlough claims, who will first analyse information in their possession to decide whether claims made are genuine or fraudulent. Sometimes they will contact employers direct and request more business records but we now know that the claimants are being offered the chance to settle their liabilities through the Code of Practice 9 (or COP 9) process. So do not see this as necessarily a negative, it can be a positive, providing a monetary settlement without the fear of a criminal prosecution.

Here at Lindsay Henson Ltd we know all about Code of Practice 9 enquiries, and how immensely stressful and worrying this is for anyone receiving a letter from HMRC stating that they suspect you have committed serious tax fraud. But believe it or not, it could be worse. You could be facing a criminal prosecution and as an alternative to that, the COP9 process incorporates their contractual disclosure facility (CDF) which gives you the opportunity to disclose all of your deliberate conduct which has resulted in Tax irregularities, discrepancies or omissions and if you follow the procedure, with the help of a specialist advisor, you can avoid a criminal prosecution. Monetary penalties are charged for anyone investigated under CP9 but we can work with you from day one to keep these to an absolute minimum to achieve a fair and reasonable settlement acceptable by both sides.

If you have received such a letter, call us immediately and we will answer all your questions without obligation. We are able to offer a very reasonable and cost-effective service and will give you a fixed price quote for the work wherever possible so that you can move on knowing the costs not only in terms of agents fees but the likely tax etc due.

Telephone Andy on 07879 464577 or Lindsay on 07584 706664