COVID claims fraud under investigation

As of 7 June, claims worth £19.6bn had been made to one million employees in furlough and £7.5bn to 2.6 million self-employed claimants (Self-Employment Income Support Scheme), HMRC data shows. However, the government has also drafted anti-fraud legislation, likely to form part of this year’s Finance Act next month.

Dawn Register, partner in tax dispute resolution at BDO, said: ‘The legislation is expected to introduce a 30-day window of opportunity to “confess” and notify HMRC of any mistakes.

‘For those where HMRC suspects fraud, we can expect serious investigations. The draft legislation includes powers to pursue company office holders where businesses become insolvent, with joint and several liability.’