• UK
  • World
    • USA
  • Entertainment
    • Celeb
    • Showbiz
    • Magazine
  • Politics
  • Sports
  • Gaming
  • Tech
  • Science
    • Education
  • Insurance
  • Business
  • Auto
  • ToS/Contact
    • ToS
    • Privacy Policy
    • Contact
NewsExplored
  • UK
  • World
    • USA
  • Entertainment
    • Celeb
    • Showbiz
    • Magazine
  • Politics
  • Sports
  • Gaming
  • Tech
  • Science
    • Education
  • Insurance
  • Business
  • Auto
  • ToS/Contact
    • ToS
    • Privacy Policy
    • Contact
  • Facebook

  • Twitter

  • LinkedIn

  • Tumblr

  • RSS

UK

Coronavirus: Up to £3.5bn in furlough cash stolen or paid in error – HMRC

Coronavirus: Up to £3.5bn in furlough cash stolen or paid in error – HMRC
Newsexplored
8th September 2020
7
SHARES
ShareTweet
SubscribeRedditGoogleWhatsappStumbleuponPinterestDiggLinkedinTumblrTelegram
Views:
2
Jim Harra, HMRC permanent secretaryImage copyright Parliament TV
Image caption HMRC’s permanent secretary Jim Harra answers questions over video conference with the Public Accounts Committee

Up to £3.5bn in Coronavirus Job Retention Scheme payments may have been claimed fraudulently or paid out in error, the government has said.

HM Revenue and Custom told MPs on the Public Accounts Committee it estimates that 5-10% of furlough cash has been paid out wrongly.

Latest data shows the government has so far paid out £35.4bn via the scheme.

The scheme has paid 80% of the wages of workers placed on leave since March, up to a maximum of £2,500 a month.

“We have made an assumption for the purposes of our planning that the error and fraud rate in this scheme could be between 5% and 10%,” HMRC’s permanent secretary Jim Harra told MPs on Monday.

“That will range from deliberate fraud through to error.”

The Public Accounts Committee estimates that a total of £30bn in tax was lost in 2019 due to taxpayer error and fraud.

Both HM Treasury and HMRC were ordered to appear in front of MPs to explain how they were intending to reduce the problem.

  • Coronavirus: Taxpayers to lose billions to virus fraud – report
  • Furlough wind down: ‘We prepared for the worst’

“What we have said in our risk assessment is we are not going to set out to try to find employers who have made legitimate mistakes in compiling their claims, because this is obviously something new that everybody had to get to grips with in a very difficult time,” said Mr Harra.

“Although we will expect employers to check their claims and repay any excess amount, what we will be focusing on is tackling abuse and fraud.”

So far, 8,000 calls have been received to the HMRC’s fraud telephone hotline. The HMRC is now looking into 27,000 “high risk” cases where they believe a serious error has been made in the amount an employer has claimed, he added.

data-ad-format="auto">

Mr Harra advised that any employee who feels that their employer may have been fraudulently claiming furlough money can report it to the HMRC by filling in a form on its website.

“While we can’t get involved in any relationship between the employee and employer, we can certainly reclaim any grant that the employer is not entitled to, which includes grants they have not passed on in wages to their employees.”

Furlough fraud warning

This is the first time that the HMRC has spoken publicly about potential fraud impacting the Coronavirus Job Retention Scheme.

Image copyright SOPA Images
Image caption HMRC is now reviewing 27,000 “high risk” cases where abuse or fraud is suspected

In July, centre-right think tank Policy Exchange warned that fraud and error could cost the government between £1.3bn and £7.9bn.


The think tank said the government’s financial rescue scheme were vulnerable to scams because of the size of the packages and the speed at which measures were rushed through to save people and businesses from economic ruin.

The calculation is based on expected fraud rates for government expenditure from the Cabinet Office and the Department for Work and Pensions.

The report said the true value lost to fraud may be closer to the higher end of the estimate “due to the higher than usual levels of fraud that accompany disaster management”.

It said: “This is a serious squandering of public finances and properly resourced post event assurance will be required to reassure the public that every possible step has been taken to reduce this level of fraud.”

At the time, a government spokesman said it was committed to “extensive post payment reviews of stimulus and support payments, to find fraud and recover money for the taxpayer”.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Google+ (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Share on Skype (Opens in new window)

Related

Related Itemscoronaviruserrorfurloughstolen
UK
8th September 2020
Newsexplored @newsexploredweb

Related Itemscoronaviruserrorfurloughstolen

More in UK

  • Read More
    Scotland’s papers: New Covid strain in Scotland and ‘save Union’ plan

    Views:2 image captionThe Herald says Scotland has identified at least three cases of the South African coronavirus...

    Newsexplored 8th September 2020
  • Read More
    The Papers: Schools out ’till Easter’ for ‘lost generation’ kids

    Views:2 By BBC NewsStaff image captionIt’s looking more likely that parents in England “will have many more...

    Newsexplored 8th September 2020
  • Read More
    Snow in the UK: Wintry weather in pictures

    Views:2 image copyrightPA Wire image captionPeople tumbled into action to make the most of the rare snowfall...

    Newsexplored 8th September 2020
  • Read More
    Covid: Four vaccine centres shut amid snow alert for Wales

    Views:2 Published 17 minutes ago Related Topics image copyrightTraffic Wales image captionSnow on the M4 Junction 24...

    Newsexplored 8th September 2020
  • Read More
    The Papers: Vaccinated told to follow rules and PM’s jab ‘gamble’

    Views:2 By BBC NewsStaff image captionThose who have had the Covid-19 vaccine must stick to lockdown rules...

    Newsexplored 8th September 2020
  • Read More
    Cheltenham Town 1-3 Man City: Six-time winners avoid FA Cup shock

    Views:2 Cheltenham Town came within nine minutes of one of the biggest shocks in recent FA Cup...

    Newsexplored 8th September 2020
  • Read More
    Covid vaccine: Can Wales meet its targets?

    Views:2 By Steve Duffy & Gwyndaf HughesBBC news It is hoped 70% of the over-80s in Wales...

    Newsexplored 8th September 2020
  • Read More
    The Papers: UK ‘feeling the strain’ but gets vaccine ‘boost’

    Views:2 By BBC NewsStaff image captionThe Financial Times is just one of Saturday’s papers that leads with...

    Newsexplored 8th September 2020
  • Read More
    Chorley 0-1 Wolverhampton Wanderers: Vitinha’s superb goal sees Wolves past non-league opponents

    Views:2 Non-league Chorley were unable to emulate the heroes from 1986 by causing an FA Cup sensation...

    Newsexplored 8th September 2020
  • Read More
    Skewen flood: Mine shaft ‘blow out’ may have flooded village

    Views:2 Published 2 hours ago media captionTeresa Dalling says a river of orange water rushed through the...

    Newsexplored 8th September 2020
  • Read More
    English councils battling financial ruin

    Views:2 By Jennifer ScottOnline political reporter, BBC News image copyrightReuters Throughout the coronavirus pandemic, warnings have been...

    Newsexplored 8th September 2020
  • Read More
    Newspaper headlines: £500 Covid payment and flood devastation

    Views:2 By BBC NewsStaff image captionThe Guardian leads on suggestions ministers are considering giving everyone who tests...

    Newsexplored 8th September 2020
Scroll for more
Tap
data-ad-format="auto">
NewsExplored

NewsExplored - Making sure all the latest news is explored?

Contact us for help

  • Popular

  • Latest

  • Comments

  • Australian Open: Heather Watson among 47 players to quarantine in Melbourne after Covid cases on flights
    Sports16th January 2021
  • The Papers: ‘Fortress Britain’ and ‘modern miracle workers’
    UK15th January 2021
  • Fashion lookahead: Eight major 2021 looks from tie-dye to pastels
    Entertainment30th December 2020
  • Fifa 21 and Frozen 2 top digital sales of 2020
    Tech8th January 2021
  • Tampa Bay Buccaneers 31-26 Green Bay Packers; Buffalo Bills 24-38 Kansas City Chiefs
    USA25th January 2021
  • The homeless drug addict who became a history professor
    USA24th January 2021
  • Kamala Harris: What the vice-president did on her first day
    USA21st January 2021
  • Biden inauguration: New president to be sworn in amid Trump snub
    USA20th January 2021
  • Les Rehrer says:

    Hello Its me :P and thanks for this post

  • optumrx login says:

    Thank For News.

  • Kent Laatsch says:

    Please let me know if you're looking for a writer…

  • Bob says:

    RT News was where I learned that Erdogan controlled isis.…

Copyright © 2018 Top News Theme. Theme by MVP Themes, powered by Wordpress.

Birmingham stabbings: Community ‘has each other’s backs’
Coronavirus: Local lockdown to begin in Caerphilly county
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok