Coronavirus support scheme abuse investigations continue
08 June 2022
The boss of a takeaway in Manchester has been banned from holding a director position for 7 years after they were found to have wrongly claimed £50,000 from support schemes. £30,000 of this was for the Eat Out to Help Out scheme, the remaining £20,000 from the Coronavirus Job Retention Scheme (CJRS).
The company, New York Krispy Fried Chicken Limited, went into liquidation in November 2020, causing the insolvency service to conduct an investigation. Investigators found the company to not have maintained adequate records to support the claims made against the CJRS.
The shop was not eligible for the Eat Out to Help Out scheme as it did not have any seating, a factor of eligibility at the time. Furthermore, the business failed to register for VAT when it was required to do so, investigators could not determine the amount of unpaid tax owed.