HMRC policy paper on error and fraud in coronavirus support schemes
19 July 2022
Her Majesty’s Revenue and Customs (HMRC) has released a policy paper exploring the error and fraud present in the coronavirus support schemes it facilitated and actions taken to recover overpayments.
HMRC conducted risk assessments on claims made against schemes as it was clear from the start that they would be targets for fraud. 65,000 claims were blocked, totalling £425 million, due to pre-payment checks. As of July 2022, HMRC claim to have recovered or prevented a total of £1.2 billion in fraud. In addition, £970 million has been returned voluntarily even though the recipients were entitled to it under the scheme rules.
The government invested over £100 million into a Taxpayer Protection Taskforce. This taskforce is aimed at combatting coronavirus scheme fraud and has opened nearly 41,000 on to one compliance interventions. It is made up of tax specialists, experienced in tackling fraud.
HMRC said the taskforce has taken “a reasonable and supportive approach to those who have made genuine mistakes - and have given these customers the opportunity to correct errors without fear of sanctions.”
Estimates of error and fraud in the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme and Eat Out to Help Out have been reduced since last assessed in 2020-21. Across the full lifetime of the schemes HMRC estimates £4.5 billion has been lost to error and fraud (in the range of £3.2 to £6.4 billion).
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.