HMRC is taking tough action against furlough fraud

As furlough draws to a close, HMRC will be looking to recoup money that may have been claimed fraudulently through the Coronavirus Job Retention Scheme (CJRS).

HMRC’s taxpayer protection taskforce has begun conducting its checks on around 30,000 mid-sized businesses as it shifts its focus to recovering a suspected £7 billion from fraudulent claims.

In total, more than a million businesses have made claims using CJRS and it is estimated that 10% of businesses have claimed incorrectly.

These cases will be checked, and if HMRC suspect you of fraud they may write to you and ask you to provide them with a full disclosure. HMRC will also invite you to enter a contractual facility (CDF) under the Code of Practice (COP9).

If you receive one of these letters from HMRC, we recommend that you get in touch with your usual Moore advisor as soon as possible.