HMRC have released guidance and information confirming details and approach they’re taking in respect of issues or fraud and managing error in respect of the various COVID-19 support schemes.
Throughout this crisis, the government has acted to protect people’s jobs and livelihoods while supporting businesses and public services across the UK which included the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS).
The CJRS has helped to pay the wages of people in 11.7 million jobs and 2.9 million self-employed workers have received a SEISS grant. HMRC and HM Treasury designed the schemes to provide support at the right time to those who needed it, whilst also recognising the need to protect taxpayers’ money against error and fraud.
HMRC’s current estimate for the amount lost to fraud and error in the schemes during 2020 to 2021 is 8.7% in CJRS, 2.5% in SEISS phases 1-3 and 8.5% in the Eat Out to Help Out scheme. This equates to £5.8 billion, against a spend of £81.2 billion. That’s why HMRC and HM Treasury designed the schemes to prevent as much fraud as possible before any payments were made, while still supporting quickly those who needed it.
The new report therefore looks at the following:
- Actions taken to minimise fraud and error in the schemes
- Using risk and intelligence profiles developed and consistently updated by HMRC compliance risk teams to block suspicious claims from being paid
- Investing in a Taxpayer Protection Taskforce
- Reduction in fraud and error during the reporting period
- Assessing the level of fraud and error
- Examples of compliance action
The full report and detail can be found here:
